What is the process for gifting a mineral interest to someone?
Generally this is done by a deed. But keep in mind a few things that may make gifting less attractive:
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This could have a negative impact if you need to qualify for long term care benefits from the government or VA. (Visit with Elder Law Attorney)
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The grantee (person to whom you gift) will not have a stepped up basis causing capital gains issues if they sell. (CPA visit)
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Depending on the value, tou may need to file a gift tax return. (CPA Question)
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You lose current income or control over the minerals
Once the minerals are transferred, operators would need to be contacted and advised of the change.
If the purpose if to avoid probate, you should visit with an attorney in the state where the minerals are located regarding a trust or transfer on death deed.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
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