How We Incorporate Your Oil & Gas Interests into Your Estate Plan

What Kind of Interests Do You Own?

First, when looking at a client's oil and gas interests we analyze all property that our client's own, as well as all interests they may have. Then, from there, we determine what kind of interests they own. There are a few different kinds of interests one can have on property. These can include mineral interests and surface interests.

Surface interests include exactly as the words illude to, the land, soil, and various structures above the ground. Mineral, or subsurface, interests on the other hand are separate from the surface interests and include oil, gas, coal, clay, and all other minerals that occur in nature that are underneath the surface. Unless specifically stated otherwise, under N.D.C.C. § 38-12-01 subsurface minerals do not include the sand, gravel, or rocks crushed for sand and gravel, those would still belong to the surface interest owner. From this severing of interests, there may be different parties that own the surface and mineral interests for the same section of land.

Once we have determined what kind of interests you own, and what your intentions are with them, we can work to protect them with the instrument that best suits your situation.

What Instruments Could We Protect Your Interests With?

There are a few ways in which we can help protect your mineral interests. If your goal is to keep the mineral interests you own in the family and be sure they stay in the family for generations to come, an irrevocable mineral trust may be the avenue you want to pursue. This instrument is irrevocable, which means that is cannot be changed or revoked once created, but this is generally not an issue because if the goal is to keep them in the family, then this is a great way to keep them protected from a variety of things such as estate taxes, creditor claims, and allows for a smooth transition and distribution process. With an irrevocable mineral interest you can still be paid from the royalties you earn during your lifetime, and you are able to choose what happens to that income once you pass.

Along with irrevocable mineral trusts, we can also help clients with the mineral deeds themselves. If you know you have mineral interests, but don't have the mineral deed, we can quickly research for you and find a copy. This helps our clients become aware of what their interests and rights are, and what they can do with them. We are also here to answer any questions clients may have regarding what exactly their interests mean. If a mineral deed never existed, we are here to help with process which often includes opening a probate to transfer deeds from the deceased estate to the living heirs.

Lastly, if you are being paid royalties on mineral interests you own from production but are unsure what is actually producing on your interests, we are happy to research into your interests and provide a thorough report to discuss with you.

Avoiding Probate

Overall, our goal is to help you avoid probate and offer a smooth transition of your estate. With that, our estate plans offer instruments that protect your assets and distribute them upon passing how you see fit. These instruments include wills, durable power of attorneys, advanced health care directives, and when applicable irrevocable mineral trusts or other instruments to protect your mineral interests. Mineral interests are real property and if we do not plan for their transition as the rest of your estate plan does, these mineral interests will fall under probate laws and be up to the state to decide where they go upon your passing. This is something that many of our clients are concerned about, and we are here to help you and your right to choose where they go upon your passing.

We are here to help with all matters concerning mineral rights and questions you may have about them. Please feel free to give us a call at 701-852-5224 to schedule a consultation and start the discussion on how we can best protect your mineral interests.