Replies to This Discussion

Permalink Reply by Ann Ticopa on July 29, 2011 at 4:47pm

I may have misunderstood, but I thought the situation you described before was that she had deeded the surface to you, but kept the mineral rights.  And that her will names you as the recipient of the mineral rights?

 

If she is being contacted by mail, my guess is it's a company like McCosar MInerals.  Those companies buy part or all of a person's mineral rights.  I get a letter every six months or so from one or the other of them. (They work from mailing lists of landowners in an area.) I've never responded and have never been contacted other than by the form letters.

 

 

Permalink Reply by Robin Jackson on July 30, 2011 at 12:56am

Hi Ann, Thank  you so much for replying..they mineral rights pass to us via the deed, she tells us they are in the will exactly the same. I have no copy of the will. Her church elders do. But I have the deed, property map here and the papers all attached to each other, from the lawyer, stating they pass to the land owner, her grandchildren , at the time of her passing. She feels she can change that now..This letter tempting her with big bucks is very  HUGE that she wants  let it go..I will call the lawyer that did the land subdivision Monday. I was at my lawyer yesterday but he left for a 2 wk.vacation ugh..I'm dealing with property size where I live, and thinking about squaring it off to the give the neighbor the piece he has been using for years..He has finally offered to pay us for it. Even though it is a small piece I am thinking about maintaining the mineral rights.

Permalink Reply by Ann Ticopa on July 30, 2011 at 3:15am

The usual way of doing a life estate is that the deed is changed to be in your name, with language in it to the effect that it's subject to your grandmother's life interest (in the mineral estate).  There is no need for anything to be in the will about it; her interest expires on her death. 

 

Say she did reply to one of the advertising letters and the company sent a salesman out.  Legally she perhaps could sell her life interest in the mineral estate.  But once the salesman realized her age, that would be that. 

 

For your peace of mind, definitely have your lawyer look the paperwork over and make sure the deed is "iron clad", that there is nothing she could do now or put in her will that could change it. 

Permalink Reply by scott brion on July 30, 2011 at 2:38am

Hi Robin,

 

I am from Liberty and have been buying minerals for a couple of years now.   I would be happy to provide you with information to help your family think through this.   It is a very personal decision to sell rights and not an easy decision for most, but it is easier if you have some good information regarding the risks and rewards of keeping vs. selling.   Selling is not for everyone.   My experience is that it can be a good option for some,but only if they fully understand the decision.   Happy to share whatever information I can.  As i recall, you are in Morris twp?  I will send you an email so you may contact me if you wish.   

Permalink Reply by Ann Ticopa on July 30, 2011 at 3:44am

Ok, an expert.  Am I mistaken in thinking there would be little interest in buying the lifetime only mineral interest of a 94 year old in 9 acres that's leased but not in a declared unit?

Permalink Reply by Brian V. on July 30, 2011 at 4:03am

No expert here but when the interested party realizes that the minerals are basically deeded away they will back off of any offer. Of course groups or individuals interested in buying minerals would have to do a full title search before moving forward with any such transaction. Much the same as a driller would have to do a complete title search before including minerals in a unit to drill a well. Once they find the deed to you they will back off. They just aren't aware of it at the moment. They are just sending out feelers and seeing if anyone bites. Robin, as long as the wording in your deed is correct you should have nothing to worry about.

Permalink Reply by Robin Jackson on July 30, 2011 at 11:46am

I will put my deed info here later tonight..I so appreciate your willingness to help me out and I will follow through with an attorney..

 

Ann or anyone, we own 13 of the 46 she has deeded away ..Mineral rights are to 46 acres until she dies..the property was deeded 13 to us, 25 to R.S.J and 8 to JD..all 3 grandchildren have deeds to their acreage with mineral rights going onto heirs at time of her death..

 

 

Permalink Reply by Ann Ticopa on July 30, 2011 at 2:05pm

Make that appointment with your lawyer to confirm that the deed means what you think it means.  You also want to confirm that - even if your grandmother could find a a buyer for her mineral rights - it would have no effect whatsoever on what you and the other grandchildren will receive after she dies. 

Permalink Reply by Robin Jackson on July 30, 2011 at 2:54pm

In the Deed, Tioga County Recorder of Deeds (seal) Instrument Number and such, fee's and such, Legal Document (do not detach)

Grantor (grandma) Grantees(us)

The property info and Excepting and Reserving- all oil, gas andmineral rights to the Grantor herein, ______, for the term of her natural life, and upon her death, all oil, gas and mieral rights shall pass to the Grantees herein, or their heirs successors and assigns..

This is a conveyance from grandmother to grandson and his wife and is therefore, wholly exempty from Realty Transfer Tax..

 

Again Anne, Thank you..

 

Permalink Reply by Robin Jackson on August 2, 2011 at 1:19am

Hi Ann , Well this is very interesting..UGH The Lawyer appt..went well he talked me to in depth and he said "SHE IS INSANE"..exact words..And yes she can sell them. However after the whole family had a meeting , via phone and two other conversations she has agreed not to..PHEW!! She stands to earn so much more in the next two years than that amount offered would be..He said she'd get 20% of their value and we as her heirs would never see those mineral rights again..It isn't fair to the heirs if they were promised and we can't sell..So we agreed again not to sell and she agreed not to sell. We offered assistance in her troubled times and hopefully she'll be ok..I'm grateful she realized the depth of this..The family was willing to seek lawyer assistance and do what we had to do.

Permalink Reply by Ann Ticopa on August 2, 2011 at 2:47am

I'm glad you reached an agreement!  I still don't understand how - assuming a standard life estate deed - her selling her lifetime mineral rigths would mean you would "never see those mineral rights again". Now, if the gasco does actually drill a good well and markets the gas, she would likely get much more in royalties than by selling her lifetime mineral rights.  And, thus, leave a larger cash estate to her heirs. But the important thing is that a big 'old family fued has been avoided.

Permalink Reply by Robin Jackson on August 2, 2011 at 1:37pm

It sure has..I really thought the lawyer would say that..She isn't gone yet and MR are hers to do as she pleases until she departs this earth.I typed the exact wording as it was in the deed. Amazing huh.