Trust, LLC or other form of Mineral Rights Ownership

North Dakota Mineral Rights
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North Dakota Question regarding form of ownership for mineral rights for multi-generational ownership. My family has ownership of non producing mineral rights in Hettinger County North Dakota. I am a second generation owner looking to simplify passing ownership to the 3rd generation.
Should I do a Trust, LLC, or Limited Partnership? I realize I will need to consult an attorney and CPA. Just want to educate myself as to what has worked for you folks. Thanks for you help.

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In my opinion, Trusts are the way to go and i agree with you needing to consult with an attorney and/or CPA.

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Thanks Texomex for your response.

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Also agree with a trust. And, yes you can do it yourself, but first few times probably best to get an attorney, and read up on land trusts. Very easy to pass thru to generations. Used them for years and work extremely well, and currently use them for oil rights.

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Thanks Lrrryo; Do you need to file paperwork to IRS or anyone else annually with a Trust?

Mike

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Don’t draft your trust yourself It is so easy to screw up a trust. I am constantly dealing with individuals who made mistakes. Don’t go to any attorney, find one who handles trusts. I’ve got nothing to gain here since I don’t practice in ND. ABRAHAM LINCOLN SAID: A man who represents himself, has a fool for a client .

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Mike, There is no reporting with a trust, nor do you have to disclose it to anyone, with a few exceptions like creating a bank account. However the trustee shows up in public records for property ownership. However, read up on them, there’s lots of parts and gotchas. Like Richard says, you’ll probably want an attorney to guide you.

I’ve been to many trust classes and stay up with the laws, however, if there’s something I’m not familiar with, I’ll hire an attorney.

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Some kinds of trusts do have reporting requirements depending upon how they are set up. They may have franchise fees in the state of origin and may have to pay income taxes. Correct legal and accounting help is essential.

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Thanks Richard. I like that Lincoln proverb. Very true. Thanks Lrrryo. You made some good points. Thanks M Barnes. You have also brought up some great points as well.