Whether you are looking for divestment options for an estate with oil and gas royalties or you need an appraised value for a mineral interest, Legacy Royalties is your best option. Legacy has worked with attorneys and CPAs for over two decades now, lending our expertise to help settle oil and gas estates.
Not sure what your next step is toward settling an estate with oil and gas assets? We may have the answer. The process of selling oil and gas royalties out of an estate can be different from state to state. We are familiar with the probate laws and title transfer requirements guiding oil and gas mineral estates in most producing states and we are happy to share from our years of experience working with trusts and estates that have oil and gas royalties.
Call us today to discuss title transfer, royalty valuation or oil and gas royalty divestment options to get you moving in the right direction.
OIL AND GAS ESTATE & PROBATE TERMINOLOGY
Below are definitions of estate and probate terminology commonly seen when dealing with oil and gas royalties in estates:
- Administrator: The person named in decedent’s will to administer the estate who accepts the appointment by qualifying before the clerk. Also called executor, executrix or personal representative.
- Affidavit of Heirship: A statement of facts relating to the death and heirship of the decedent which is sworn to before a notary public. Usually executed by someone who knew the decedent but is not an heir to the estate.
- Ancillary Probate: The additional probate required to legally transfer title when the oil royalties are not located in the same state as the decedent. For example, the decedent’s estate was probated in New York (the decedent’s state of residence) but the oil royalties are located in Oklahoma.
- Attorney in Fact: A document authorizing one person (“agent”) to act on behalf of another person (“principal”). Also called “Power of Attorney.”
- Beneficiary: Person receiving assets of an estate under the terms of the will.
- Certified Copy: A copy of a document that is signed and certified as a true copy by the officer to whose custody the original is entrusted.
- Decedent: Deceased person.
- Estate: The decedent’s property at the time of his death.
- Executor: The person named in decedent’s will to administer the estate who accepts the appointment by qualifying before the clerk. Also called executrix, administrator or personal representative.
- Executrix: A female executor. Also called administrator or personal representative.
- Fiduciary: A person in a position of trust with respect to another’s property. A term used to refer to the executor or administrator.
- Final Decree: A court ruling detailing the distribution of assets of an estate.
- Foreign Will: When the decedent owned an asset in one state but the decedent’s will was probated in another state (i.e. the decedent owned oil royalties in Texas but his will was probated in Florida).
- Heir: Person receiving assets of an estate under the terms of the will.
- Heirs at Law: Persons who would inherit the decedent’s estate if the decedent died intestate, or without a will.
- Intestate Estate: An estate to be administered without a will.
- Inventory: Detailed list of real and personal property in an estate.
- Letters Testamentary: A written decree of the court whereby the executor is named.
- Personal Representative: The person named in decedent’s will to administer the estate who accepts the appointment by qualifying before the clerk. Also called administrator or executor.
- Power of Attorney: A document authorizing one person (“agent”) to act on behalf of another person (“principal”). Also called “Attorney-in-Fact.”
- Probate: The legal process in which a court oversees the distribution of property left in a will. The procedure whereby a will is admitted of record in the clerk’s office, including the process of qualifying a person as an executor of an estate and the process of administering an estate.
- Testator: One who dies leaving a will.
- Testate Estate: An estate to be administered pursuant to a will.
- Will: An individual’s written declaration of property disposal after death.
OIL AND GAS DEEDS
Listed below are descriptions of different oil and gas deeds as well as some samples:
- Joint Tenant Deed: Transfers undivided co-ownership to two or more people whereby, upon death of the first owner, his share automatically transfers in equal shares to remaining owner(s).
- Life Estate Deed: Transfers the grantee the right to receive revenues generated from oil and gas production and lease bonuses as long as the grantee is alive. Once the grantee dies, the rights to receive revenue reverts back to the grantor. Commonly used when an owner wants to transfer their oil assets out of their estate but want to continue to receive the revenues generated from oil royalties during their lifetime.
- Mineral Deed: Transfers ownership of the royalty interest including the right to execute leases and receive bonus payments.
- Quit Claim Deed: Also called quitclaim deed, quickclaim deed and quick claim deed. Transfers any mineral, royalty or overriding royalty owned with no warranty of title.
- Royalty Deed: Transfers ownership of the royalty interest only and not the right to execute leases and receive bonus payments.