If you’re a Houston resident planning your estate, you might think you’ve covered all your bases. But there’s a hidden asset that many overlook: mineral rights. In the heart of oil country, these rights can be valuable, and ignoring them in your estate plan could lead to family disputes and lost opportunities.
Houston’s unique position in the energy industry makes mineral rights crucial for estate planning. The city’s history is tied deeply to oil and gas exploration, and many residents own mineral rights without realizing it. These rights can be a source of unexpected wealth, but they also come with complex legal and financial considerations that require careful planning.
Unearthing the value of mineral rights
Mineral rights grant ownership of underground resources like oil, gas and valuable metals. In Texas, property owners often sell or lease these rights separately from their land. Consequently, you might own mineral rights even if you don’t own the property above them.
Mineral rights are important in estate planning because:
- They can provide income through royalties.
- Property value can increase if you discover resources.
- You can pass them down through generations.
It’s worth noting that mineral rights can also come with responsibilities, such as tax obligations and potential environmental liabilities.
The mineral rights maze in estate planning
In Texas, mineral rights often take precedence over surface rights. The mineral rights owner may have the right to access the property for extraction, even if they don’t own the surface land.
In estate planning, considerations for them include:
- Dividing mineral rights among multiple heirs
- Specifying distribution of royalties
- Setting up special trusts to manage mineral rights
Mismanaging mineral rights in your estate plan could cause unintended consequences for your heirs.
Securing your mineral rights legacy
To address mineral rights properly in your estate plan, consulting with an attorney who understands Texas mineral law is advisable. They can assist you with:
- Valuing your mineral rights
- Deciding whether to sell, lease or pass down your rights
- Creating a plan for managing future royalties
Incorporating mineral rights in your estate plan protects a valuable asset and prevents potential conflicts among your heirs. You’re also ensuring that your heirs carry out your wishes as you intend.
Don’t let this often-overlooked aspect of estate planning catch you off guard. Invest time in understanding your mineral rights and include them in your planning discussions. Your foresight could provide financial security for loved ones in years to come.