Dealing with mineral interests as part of an estate can be tricky, especially when older interests have not been distributed properly upon death. Late probate of wills can lead to mineral interests not being transferred to the rightful heirs, which creates great problems down the road when oil companies are trying to lease inherited mineral rights. When drafting a will, it is important to specifically identify who is entitled to the proceeds of the mineral estate—the life tenant or remainderman. Oftentimes, testators want the life tenant to enjoy this income, so careful drafting can assure this.
See Holland & Hart LLP, Seeking Clarity in Distribution of Mineral Interests from Decedent’s Estate, National Law Review, July 20, 2016.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
