My aunt died 5 months ago and held mineral rights in 7 different areas of Lea County. We need to establish a new basis for capital gains tax purposes in order to minimize taxes for the beneficiaries. We have offers to buy those minerals, but the new basis needs to be set before any sales take place. Does anyone know how to get this done that would satisfy IRS requirements?
I’d speak to your estate attorney. The IRS may have certain rules to abide by when establishing value of such transactions (i.e. valuing them at $80 v. $40 oil is going to make a huge difference).
There are mineral valuation companies who can provide that sort of service. However, be weary of those who pose as valuation companies, but are truly interested in purchasing your mineral rights and thus would not be able to give an unbiased opinion.
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First off, do you have your aunts will that names you and your relatives the beneficiaries?
If so, probate THAT will in the county/state she died in. Costs will run at least $500 (that is what we paid two years ago). That gives you legal title. But that is only half of the process.
Then you will take that probated will and have it filed with a Lea County attorney in Lea County Courts saying exactly what you and your relatives own and that will also cost around $500. At that point, you now have LEA COUNTY COURTS saying you own so much in such a such of area. That is called a “marketable title”, which is what you want.
hope that helps
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