Life Estate Planning for Mineral Royalties
Although government intervention in most cases is a good sign, but when we see the case government intervention in mineral rights cases it is usually not a good sign.
Careful estate planning helps you lessen the tax burden and also helps in the reduction of the paperwork burden. For many people the choice of a concept known as ‘life estate’ proves to be the better option. In this process the person can deed the property in another person’s name, all the while utilizing owners’ rights until his / her death. Although at one point in life that property reverts back to the person who is in possession of the deed. The ‘life tenant’ or the original owner is at the liberty of enjoying full ownership rights inclusive of complete mineral royalty rights. The only right they have to let go of is the right to sell these oil and gas royalties. The life estate is utilized when the heir wants to get their share of property or when they want to avoid probate, or to ensure that the ancestral claims to the land remains within the family (claims which allow the land to stay within the family, for example from one child to another). Like any action which has a lot of legal action going on beneath the surface, it can prove to be very difficult to employ a good lawyer. One which understand and stands by your case fully. If in case you are lucky enough to become the recipient of a life estate deed, you should consider the additional options for aid. It might be that you have been granted inheritance to property with leased mineral rights. This actually means that the oil or gas company which is responsible for the production of the minerals is subject to a percentage charge from the production of the land. The former owner of the land must have enjoyed huge amounts of royalties from this land, and now it’s time you do the same. Many companies buy mineral interests but not the land itself. This process makes it easier for all these companies in the paperwork since they do not actually own the land but only rights to its minerals. They have legal rights to the resources produced on the land. This means the royalty company is able to convert these royalties into cash more quickly and efficiently when compared with the owner of the land. For more information visit our website: http://www.uniroyalties.com/oil-gas-royalties