There are many good reasons to sell your mineral rights if the time is right for you. Some advantages to selling your oil and gas royalties or mineral interests are:
Getting a guaranteed payment today rather than taking the risk that oil may or may not be found some time in the future.
Receiving a large, lump sum payout rather than monthly, quarterly or yearly checks.
Reduce the expenses for trusts, estates, partnerships and monthly distributions.
Managing mineral rights or royalty interests requires time and money in order to track royalty checks, communicate with well operators, and compute production taxes, among other reasons. Eliminating the paperwork and accounting hassles.
There may be various different tax reasons to sell interests at specific times, such as for generating favorable capital gains tax treatment, estate planning, or to offset deductions.
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