I see this is not a currently active group but I will post here anyway, 2022, with hopes of a helpful response. What is a good way to transfer my life estate in mineral rights (Coleman County)to my grandson owner of the relevant property now, while we are both still alive. I would like to avoid “gift” and a 709 IRS filing. Should a dollar value be necessary how are such mineral rights appraised? Thank you vey much for your thoughts.
I am not a lawyer, but really recommend that you retain one to transfer minerals properly. You said you have a life estate, so the remainderman gets the minerals after you pass. If it is other than your grandson, that is an issue as the minerals go to that person by the previous deed. Never try to outrun the IRS. If you can deed to your grandson, then it would be wise to get an appraisal as of the date of purchase. An exchange of money may be required. If the grandson sells later, he may have to pay capital gains, so knowing the value on the date of sale is important. Talk to an accountant and an attorney to get professional advice.
2 Likes
Thank you, M Barnes, for your helpful reply. How does one locate a mineral rights appraiser in Coleman County? My google search just turned up wannabe buyers. Let me note that I do not live near Coleman County, make arrangements from afar.
The Directories tab above lists several mineral appraisers. They do not have to live in the county as the methodology is standard.
2 Likes
Find a landman that you feel you can trust and go from there. Along with a lawyer that is certified in oil and gas. I have used a landman from the Abilene/ Sweetwater area named Hunter Aycock. He seems to know what he was doing.
1 Like
What we have done in our family is to set up a trust with you as the trustee and upon your death, your grandson as the trustee. This will require new division orders but that is not too big of a deal. After this is accomplished, you as the trustee have full control of the trust and distributions. Upon your death, your grandson will become the controlling trustee. Remember that you won’t own the rights but the trust will but you will have full control.
This topic was automatically closed after 90 days. New replies are no longer allowed.