If you live in an area that is rich with mineral oil, you have likely been asked whether you have considered selling your mineral rights. Many people have sold the rights to the minerals on their property, earning them extra assets and cash to use in the future.
However, the process of selling your mineral rights can be complicated, and you should only get involved if you truly want to sell your mineral rights. Not sure why you would want to sell them in the first place? Keep reading below to see why so many have made the decision to sell.
Control over your finances. If the government or some other entity attempts to drill on your property for minerals or oil, you’ll receive money. However, this may not ever happen. Choosing to sell your mineral rights allows you to be proactive and get the money for your minerals on your own terms, not when the government makes the decision to drill on your property. With the money you make from selling your mineral rights, you’ll be able to respond to any financial emergencies as they come up.
Planning for the Long-term. Unfortunately, there will be a time where you aren’t around to take care of your family. Selling your mineral rights will give you money to pass on to your family in the event of your passing. This will ensure that your family will be taken care of, even when you’re gone.
Get ahead of the curve. One look at the political and environmental conversations that are happening around the globe and it becomes apparent that oil is becoming less and less popular and people are moving towards different forms of energy, like wind and solar energy. You don’t want to attempt to sell your oil rights when there is no longer a demand for oil, so you should try to sell your oil and mineral rights while the demand for them is still high.
Taxes. For many, selling their mineral and oil rights is much preferable to leasing their oil and mineral rights. Those who decided to lease their rights as opposed to selling them will see their taxes increase when tax season comes, as money made from leasing is treated as regular income. However, if you sell your oil or mineral rights, it may count as a capital gain tax. So, you should sell your rights right before rates go up or just as soon as they go down.
Next steps. If you’ve been convinced and are now looking to sell your mineral rights, the first thing you should do is reach out to a mineral rights broker. He or she will be able to connect you with interested buyers and make sure that you get the highest rate possible for your oil or mineral rights. They’ll help make a complicated process easy and handle all the hard work — all you have to do is watch your bank account grow.Read More