WHAT ARE
MINERAL RIGHTS?

CASH

Sometimes we just have a need for cash. Your mineral rights, royalty, and royalty income all have value and can be sold or leased in exchange for cash.

CONVERTING ASSETS

Oil & gas producing interests are depleting assets. Many people choose to convert these assets to non-depleting assets such as real estate, stocks, and certificates of deposit. In the case of minerals and royalties, this can be accomplished on a tax deferred basis by virtue of a 1031 Exchange.

TAXES

Your royalty payments are being taxed in one or more of the following ways:

A. Federal Income Tax

B. State Income Taxes

C. State Severance Tax

D. State Property Tax or Ad Valorem Tax

ESTATE MANAGEMENT

It is often easier to liquidate assets held by an individual than it is to probate an estate and manage those assets going forward. Should the individual hold properties in several states, the estate will have to be probated in each state which is a costly endeavor. It is much more simple to distribute cash to heirs than to divide up real property.

LESS HASSLE

The sale of your minerals or royalties will eliminate the need for legal work and accounting that may have been an ongoing part of your ownership. Selling your minerals will also simplify your taxes.