The Oklahoma Bar Journal May 2024

N atural R esources L aw

U NDERSTANDING THE VALUATION OF MINERAL INTERESTS is crucial for Medicaid eligibility for long-term care services but is useful in other regards as well. This asset can be easily overlooked as clients might not be aware of the sometimes sig nificant attributed value. This article provides a comprehensive overview, from the basic valuation formulas to the specific exclusions that can affect eligibility. It highlights the importance of accurate documentation and understanding the potential value of both pro ducing and nonproducing mineral interests and aims to clarify the process for attorneys working in elder law, estate planning, oil and gas and other areas. Navigating Mineral Interest Valuation Pathways for Medicaid Long-Term Care Applications By Shannon D. Smith

that sometimes surprises applicants, especially those who own only nonproducing or open (unleased) interests. On this path, it is helpful to assist applicants in developing an understanding of why all mineral interests – whether leased, royalty- producing or open (unleased) – have value and why appropriate documentation must be submitted for each interest owned. Applicants may provide appraisal valuations from estab lished professionals who are knowledgeable in the area or may request that Oklahoma Human Services provide a resource val uation based on the submittal of documentation of mineral inter est ownership information. For

valuation process are accomplished efficiently and effectively, making it more manageable for everyone involved. Even with such a road map, unexpected speed bumps can pop up along the way. The roadmap set forth herein will address both guideposts and speed bumps – an understanding of which can be helpful in getting clients from appli cation to valuation while reducing friction and making the journey less stressful along the way. For Medicaid eligibility, all mineral interests are considered to have value. Mineral interests owned separately from real property are attributed a resource value as part of the Medicaid eligibility determi nation process in Oklahoma – a fact

Applying for Medicaid benefits for long-term care is a complex and time-sensitive endeavor. Families often face special challenges in assisting loved ones during difficult times, especially when medical con siderations contribute to stress and urgency. Whether records are well maintained or not, even organized files can require supplementation when applying for Medicaid. This is where a guide or “roadmap” can be very helpful. It not only explains and eases the frustrations applicants and their families might experience, but it also streamlines the application process, increasing the likelihood of initial approval. It can also help ensure that tasks associated with the mineral interest

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

48 | MAY 2024

THE OKLAHOMA BAR JOURNAL