Estate Planning for Mineral Rights and Royalties: Key Considerations for Estate Planners and Property Rights Holders
Conveyances of Fractional Mineral Interests, Royalties, and Oil and Gas Leases; Types of Mineral Assets, Property Rights, and More
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Estate Planning
- event Date
Thursday, September 29, 2022
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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This CLE webinar will provide estate planners and attorneys with an in-depth analysis of critical issues and planning strategies for addressing mineral rights and royalties in estate planning. The panel will discuss practical techniques for gifting and transferring mineral and royalty rights, the importance of assessing the mineral interest, challenges for conveying fractional interests, oil and gas leases, and valuation issues. The panel will also offer guidance on granting language, instruments of conveyance, and other critical estate planning issues for mineral interests and royalties.
Ms. Lovell couples her knowledge of real property law with her background in civil litigation, estate planning, and probate to provide unique succession planning solutions to her clients. For the last several years, she has developed her expertise in mineral title and related issues. Kylie is licensed in Texas and Colorado.
The mineral estate and royalty interests are valuable assets that cannot be ignored in estate planning. Estate planners must understand the characterization of mineral rights and royalties and planning methods to maintain family ownership and minimize taxes.
Mineral rights are part of various ownership rights connected to a piece of real estate, allowing the rights holder to grant use of the land to others. This involves granting control of the land (surface estate) and controlling what's beneath the surface (mineral estate). Typically, such rights are provided to a company that explores and extracts oil, gas, etc., from the land or for developing energy projects and facilities.
The treatment of mineral rights can vary; some states treat it as a real property right, while others treat it as personal property rights. In addition, holders of mineral rights and royalties risk adverse tax liability upon death unless they take proactive steps to ensure these assets pass to their heirs or beneficiaries. Unique planning factors apply to mineral rights and royalties that counsel must consider, such as the ownership of the land, valuation, inheritance issues, holding and transferring rights, and complex tax regulations.
Estate planning counsel must know how these nuances impact estate plans and the available transaction structures to ensure efficient estate administration.
Listen as our panel discusses practical techniques for gifting and transferring mineral and royalty rights and offers guidance on instruments of conveyance and other critical estate planning issues for mineral interests and royalties.
- Overview of mineral rights and royalties
- Effective estate planning techniques
- Structuring transactions to manage both tax and non-tax issues
The panel will discuss these and other key issues:
- The transferability of mineral rights and royalties and key issues that may arise
- Critical considerations for sellers and buyers in preparing for the transfer of mineral rights and royalties
- Determining the nature and value of mineral interests
- Challenges for conveying fractional interests
- Handling oil and gas leases
- Navigating valuation issues
- Effective estate planning techniques for mineral rights and royalties; use of LLCs, trusts, etc.
- Structuring transactions to manage both tax and non-tax issues involving mineral rights and royalties
