We found non-producing royal interests still in our great grandmother and grandmother’s name in both Arkansas and Oklahoma. What is the best way to begin getting them transferred into our name? Or even to see if they are still on the tax roles in the specific counties?
Any help would be appreciated!
Thanks
In Oklahoma oil and gas interests by themselves do not appear in tax roles.
In Oklahoma, a mineral interest is considered an interest in land.
When an individual dies owning a mineral interest in their own name (not held in trust, by transfer-on-death deed, joint tenancy, or life estate), there are two primary ways for heirs to be recognized as owners:
1. Probate
Probate is a court-supervised process that can often be completed in a relatively short time (sometimes 50–75 days). Many attorneys handle straightforward probates on a flat-fee basis. In uncomplicated cases, heirs are rarely required to appear in court.
Once the court enters its final order, a certified copy is filed in the land records, transferring ownership from the decedent’s estate to the rightful heirs. Probate is required even if the decedent left no Last Will and Testament, as Oklahoma law provides default inheritance rules.
2. Affidavit of Heirship (AOH)
An affidavit of heirship is a sworn statement that reports the decedent’s death, identifies heirs, and may include a surviving spouse. It is filed in the land records to give notice of who is believed to inherit. If a Last Will and Testament exists, it may be attached.
Affidavits of heirship are often requested when signing an oil and gas lease. However, there are important limitations:
An AOH does not create marketable title unless it has been of record for 10 years with no conflicting documents filed.
If a Will exists, many title attorneys consider an AOH insufficient since only a court can determine a Will’s validity.
Many operators will not pay royalties under an AOH until the 10-year period has passed, even though they may accept it for leasing and bonus payments.
For this reason, an affidavit of heirship is usually practical only when the anticipated royalties are too small to justify the cost of probate.
“”“This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.”“”
I didn’t know about the 10 year uncontested rule in Oklahoma and wonder if Kansas followed suit. Who can speak to Kansas intestate succession?
To my knowledge, Utah doesn’t have that rule or exception to rule, either it has to be a Will that is probated, or, after 3 years, it requires a Determination of Heirship, ruled on by a court of law, in order to clear the title to the heirs of an estate. For this reason, if you own any real property, land or minerals, it is a good idea to let your heirs know about it and involve them in the transfer to the next generation, or formalize your plans in an estate plan (Will, Trust, business entity, etc.) so that you can make your wishes known.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
Just a little added thought: even if the royalty interests are very small and currently not producing, owners may wish to consider what happens if and when a horizontal well is drilled covering those interests. It can be very lucrative even for small decimal interests. This has happened with my interests several times in the past three or four years. In these cases the cost of probate could be negligable.
Ditto on what the previous posts said. Have you also checked the unclaimed property sites in the states where the ladies lived. Just because you don’t currently have checks coming in doesn’t mean that there are not monies stuck at the state treasurers’ offices waiting to be claimed. That would also require the correct probate work to be done.
Your suject title says Kansas but your written post says Arkansas. The laws will be different in these states. How did you find these interests and verified that there have been no filings in the county deed records for a sale or assignment? All the descendants / heirs can work together and share the costs to establish title.