After reviewing many of the posts regarding mineral rights inheritance in Louisiana, I could not find a reply to one poster's question on the value of forming family LLCs to hold mineral rights. Evidently, many LA attorney's recommend them but I have yet to see anyone list compelling reasons for relatively small mineral rights owners to go to the expense to form one.
In my case, I collect relatively small royalties from some 40 wells scattered on many small lots spread throughout several parishes and being paid out by 4 different producers. If I simply leave my estate to my two kids, I can imagine a logistical nightmare, and expense, when I pass(I'm single) and my 2 kids (or their attorney) have to sort out dividing these royalties in half. Is this a situation where a family partnership or LLC would simplify things by consolidating all royalty payments to one entity? I'm sure the producers would prefer this instead of having to issue new division orders times 2! thanks for any insights.
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I am in St. Louis but plan to ask our accountant anyway.
I thought for sure there would be folks out there who had been through this. ?
I live way up in Illinois and my accountant had no idea when I asked him this question, said he would have to do some research, which isn't very reassuring. if you are in the Louisiana area and find a straightforward answer to this from a local CPA, I'd appreciate hearing about the options. Thanks.
I have been wondering the same thing.
If one owner of the mineral rights want to pass the royalty income onto his heirs say to 6 children.
Could a trust or entity be responsible for dividing the income between the kids each month?
Could 6 kids own the land and rights without physically dividing it?
I might be asking the same question as Les, but I'm curious if someone has been through this.
I will ask an accountant so thanks for that Skip.
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