Oil and gas can be vital resources, making this industry a valuable venue for sustainable investments that may benefit families across multiple generations. Mineral rights owners could hold on to their interests with the intention of passing them on to their children, but is this type of property inheritable?
Unlike other asset types that are easy to manage, mineral rights work in tandem with surface rights, which may be owned by the same person or someone else. Because of the complex nuances surrounding mineral and surface ownership, inheriting these rights can be possible but often comes with a specific set of challenges.
How this type of ownership works
Determining whether mineral rights are inheritable may depend on how these rights work. Texas law usually divides mineral and surface estates, allowing owners to do what they want with them separately. Sometimes, they can have an owner who could decide to sever and sell only the surface rights while keeping their mineral interests. It usually happens because the mineral estate prevails, allowing the owner to continue using the surface estate and conducting work for exploration.
Due to their nature, someone can inherit these rights with the proper legal arrangement. Because scenarios can quickly become complicated based on the deeds and documents left by the owner, transferring ownership from the deceased to the inheritor could be confusing, usually causing disputes or misunderstandings if someone else has an interest in the surface or mineral estates.
Understanding mineral rights and ownership issues
Owning mineral rights can come with various legal issues, especially if other parties have a stake in the operation. Working with other entities can be beneficial, but as more parties become involved, the setup can be more confusing when defining ownership and rights to use the property. In these situations, seeking legal counsel can be beneficial to address any vagueness and allow all parties to conduct work appropriately.
