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How to Fund Oil, Gas or Mineral Rights into a Trust

Recording a New Deed or Assignment into Your Trust

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If you own oil, gas or mineral rights, then don't overlook the importance of getting them into the name of your revocable living trust. Here's how.

What Type of Oil, Gas or Mineral Right Do You Own?

Before you can transfer ownership of your oil, gas or mineral rights into the name of your revocable living trust, you will need to understand what type of interest you own. Is it the actual real estate that contains the valuable oil, gas or mineral deposits? Is it the right to the oil, gas or mineral deposits that is separate from the land itself? Is it an interest in a lease or royalty agreement? Or is it some combination of two or more of these things?

How to Transfer Deeded Oil, Gas or Mineral Rights into Your Trust

If you own the actual real estate that contains the valuable oil, gas or mineral deposits, then you will have to sign a new deed which transfers ownership of the real estate into the name of your revocable living trust. Refer to How to Fund Real Estate into a Trust for the details on how to accomplish this.

How to Transfer Non-Deeded Oil, Gas or Mineral Rights into Your Trust

If you own the right to the oil, gas or mineral deposits that is separate from the land itself and/or an interest in a lease or royalty agreement, then you will have to assign your rights to the separate interest or lease or royalty interest into the name of your revocable living trust. Depending on how ownership of the oil, gas or mineral rights were transferred to you, you may either have to record an assignment of your rights to your trust among the appropriate land records or contact the company that pays you the lease or royalty payments to determine their exact procedure for transferring your ownership rights into the name of your revocable living trust.

When to Consult With an Estate Planning Attorney

Because ownership interests in oil, gas or mineral deposits can be extremely complicated, consult with an estate planning attorney in the state where your oil, gas or mineral rights are located in order to determine the appropriate process under applicable state law for funding your ownership rights into the name of your revocable living trust.

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