Transfer Ownership of Rights

Oklahoma Mineral Rights Canadian County, OK
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I’d like to transfer my mineral rights from a trust to me. The income is low and I could eliminate filing tax return on the trust which eats 30% of the money.

Is this something I can do online or would I have to hire someone.

Thanks

2

David, you will need a trustee’s deed and a memorandum showing that the person signing the Trustee’s deed has that authority. So I’m assuming that you are the successor trustee.

In the meantime you might want to visit with a CPA, my understanding is that the trust is taxed unless income is paid out to the beneficiary. Then it is taxed at that individual’s rate.

This post is not legal, investment or tax advice, it is for discussion purposes only. Reading or responding to this post does not create an attorney-client relationship.

3

Richard- I believe it matters whether it is a Revocable or Irrevocable Trust. The first is a pass through trust taxed at the individual level (beneficiary) the other has its own TIN & the Trust pays the tax. Something is amiss if the property pays very little & the tax bill is 30%. This is not legal advice, just an opinion based on experience.

4

Thanks Todd & Richard - It is a Protective Trust in Missouri, I can change ownership. My accountant has a $400 minimum on trust preparation, and on a low year I may only get $2500 in royalties - so so with the tax and prep fee it can be 30%

Does a “trustee’s deed” already exist and I need a copy of it, or is it something I have prepared?

Thanks

5

Todd, great points. That is why I’m not an accountant.

6

You can prepare the Document yourself, but I would strongly recommend that you hire a lawyer so it is done properly. There are no “templates” that I am aware of as every Trust is different.

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