How to transfer decedent’s mineral rights, oil leases, undeveloped land and timeshares located in California.

Successor Trustees, executors and heirs can transfer real property in California owned by a decedent with a judicial council form titled “Affidavit re Real Property of Small Value.”

The “Affidavit re Real Property of Small Value” form is used for post death transfers of real property located in California valued at less than $50,000. This limits the procedure to mineral rights, oil leases, undeveloped land and timeshares. The affidavit is signed, under penalty of perjury by the heir(s) claiming ownership.

The affidavit if filed with the probate clerk in the county where the decedent lived or if the decedent lived outside of California, the county where the real property is located. The affidavit is a Judicial Council form. Use of the form is mandatory. Attached to the Affidavit are; a certificate of death, Will or assertion of intestacy right, legal description and an “Inventory and Appraisal.”

On the “Inventory and Appraisal” is the fair market value of the real property as of date of death. The appraisal must be performed by a probate referee. Probate referees are appointed by the court and are officers of the court.(s)(

The affidavit is filed with and reviewed by the clerk of the court who affixes the court’s seal, certifies, signs and returns the affidavit. Next the affidavit is recorded in the county where the real property is located. Recording establishes the heir who signed the affidavit as the owner of the real property.

Additional requirements for use of transfer by affidavit are the lapse of six months from decedent’s death and there is on other proceeding in any probate court in California. The $50,000 limitation excludes real property owned in joint tenancy with a surviving joint tenant and real property owned by a trust.

Mark W. Bidwell, a licensed California attorney prepares for executors of Wills, Successor Trustees and heirs of a decedent  “Affidavit Real Property of Small Value” to avoid formal probate, save time and save money.  Transfer by affidavit is available for real property in California with a market value less than $50,000.



Oil and Gas Leases

Executors of Wills, successor trustees and heirs can use the “Affidavit Real Property of Small Value” (the “Affidavit”) to change the payee of oil and gas leases. The Affidavit is a powerful and inexpensive tool to avoid probate and save time for oil and gas leases valued at less than $50,000.

Many Californians own an interest in an oil and gas lease. The lease is a separate and distinct ownership interest in oil and natural gas found below the surface of real property owned by someone else. The lease provides a revenue stream to the owner.

After the owner has died the leasing company continues to make checks payable to the decedent. These checks cannot be deposited or cashed into a bank account. Most often the revenue stream is a few hundred dollars a month.

Many heirs are tempted to walk away from these payments because of the complexity of changing ownership. But the small revenue stream is an opportunity. Most often the appraised value of this small revenue stream is less than $50,000.

A state appointed probate referee determines the market value of the lease as of date of death. If the probate referee determines the market value is less than $50,000 the Affidavit, a certificate of death, legal description and an Inventory and Appraisal are filed with the Clerk of the Court.

The Court Clerk returns a signed certified copy of the Affidavit. The affidavit is recorded with County Recorder. A copy of the recorded Affidavit is provided to the leasing agent. The affidavit identifies the heirs as owners and payees.

An oil and gas lease owned by a decedent may be transferred to heirs by an “Affidavit Real Property of Small Value.” The Affidavit is economical and efficient. The Affidavit changes the payee from the decedent to the heirs so monthly lease checks can be deposited.