Probate Court for Heirs in Mineral Rights

By David Carnes

Mineral rights are property rights to underground substances such as oil, natural gas and precious metals. While in most countries these resources belong to the government, in the U.S. they usually belong to whoever owns the surface. If you inherited mineral rights, the estate executor must transfer them into your name during probate proceedings.

Mineral Rights

Mineral rights allow you to extract and sell underground natural resources or lease them to others. These rights are normally defined as rights to resources that exist in deposits located under a specific parcel of surface land. The boundaries of the underground parcel may or may not be the same as the boundaries of a surface parcel -- a surface owner may divide his land into several sections, for example, and transfer mineral rights to separate owners.

Probate

When someone dies, his assets become part of a probate estate. If the decedent left a will, the will usually appoints an executor to administer the estate during probate and transfer its assets, including mineral rights, to beneficiaries. The probate court appoints the executor, who is usually named in the will, but may appoint someone else if the executor named in the will is an inappropriate choice, if the will does not name an executor or if there is no valid will at all. Heirs and potential heirs are entitled to dispute the decedent's will and the disposition of estate assets.

Protect your loved ones. Start My Estate Plan

Transfer of Rights

To transfer title to mineral rights, a title search must be conducted by an attorney or a title insurance company to confirm the estate actually owns the mineral rights, and a mineral deed must be executed by the estate executor in favor of the beneficiary. A mineral deed is created when mineral rights are sold separately from the surface of real estate. A mineral deed identifies the transferor and the transferee. In an inheritance, the decedent's estate is the transferor and the beneficiary is the transferee. The deed includes a legal description of the rights transferred. When drafting a new mineral deed, it is best to refer to the legal description of rights that appears on the current mineral deed that transferred mineral rights to the estate, if one exists. The deed contains a warranty of title from the grantor and must be signed by the executor. The executor must record the deed with the local land recorder's office.

Mineral Leases

Instead of title to mineral rights, you may inherit an interest in a mineral lease. Such interests are defined as a percentage of the revenues derived from the extracted minerals. A mineral lease represents the right to extract and sell minerals for a certain period of time, such as 25 years. To transfer title to an interest in a mineral lease, the estate executor must execute a written assignment of these rights in your favor and record the assignment with the local land recorder's office.

Protect your loved ones. Start My Estate Plan
How to Transfer the Names on an Inheritance of a Gas Well
 

References

Resources

Related articles

What Is an Executor Deed?

An executor’s deed is used to transfer real property from the estate of a deceased person to an heir pursuant to the terms of a will. It is similar to an administrative deed, which is used when a person dies without a will. The executor of an estate is the person appointed in the will to marshal the deceased's assets, determine what debts and liabilities need to be paid out of estate funds and ultimately distribute the assets to designated heirs or beneficiaries.

Can a Trustee Sign the Title of a Car Over Upon the Death of the Owner?

Many people establish trusts to avoid probate proceedings for their heirs. Revocable trusts are the most popular choice for estate planning. This is because the trust maker retains full rights to change asset distributions, beneficiaries and trustees. A trustee manages and controls trust assets for the benefit of the trust's named beneficiaries and may transfer title to real and personal trust property according to the trust's terms.

How to Sell a Vehicle in Michigan When Owner Dies Without a Will

Vehicles are often left riderless when their owners die, at least momentarily; however, riderless doesn't mean useless. The cars can be sold so beneficiaries of the deceased can use the money from the sales. Even if you are the vehicle owner’s close family member, the title of the vehicle must be in your name before you can sell it. Michigan has a specific procedure for putting a vehicle in your name when you are the closest relative to the deceased owner, enabling you to keep the vehicle or sell it as you wish.

LegalZoom. Legal help is here. Start Here. Wills. Trusts. Attorney help. Wills & Trusts

Related articles

How to Transfer a Deed to a House if the Owner Dies Without a Will

When someone who owns the entire interest in a parcel of land or real property dies without a will, the state’s laws of ...

How to Write a Deed With Power of Attorney

A real estate deed is a document representing legal ownership of a parcel of real estate. To transfer ownership of real ...

Who Is Entitled to a Vehicle After a Person Dies If It Is Not Included in a Will or Trust?

A vehicle not included in a will or trust instrument is passed down according to a state's rules of intestacy or as a ...

Can You Change a Deed Anytime You Want to if You Have Power of Attorney?

When you sell real property, the sale is recorded by changing the deed to the property. For various reasons, a person ...

Browse by category
Ready to Begin? GET STARTED