Estate Planning for Mineral Rights

Mineral rights require special attention in estate planning. There are a multitude of facets to ownership, management and transfer. Using a family holding company provides for sound management and flexibility. A company may be a partnership, limited liability company or a trust, but generally a company should have pass-through taxation.

The goal of estate planning is a smooth estate administration, preserving asset value and transferring them to beneficiaries without unnecessary complications. At a basic level, transferring mineral rights into a company prevents mistakes in multiple transfers, provides for consolidated management and promotes economies of scale. On a more technical level, company ownership provides valuation and tax efficiencies as well as liability protection from an owner’s creditors. A company also helps owners realize more intangible goals such as providing for successive managers, promoting consistency of operations, defining permitted successor owners and creating mechanisms for resolving disputes.

Click here to see the full article in LawWeek Colorado.


Moye White