Do I need a Lawyer or an Accountant? (And other questions)

[HGW]

Three part question (I appreciate any answers for any of them!)

1. I’m trying to decide if I need an LLC or a trust (and then set up the trust). The goal is to minimize taxes, protect assets, maximize returns, etc. Should I be looking for a lawyer or an accountant for that?

2. If I live in one state, but my mineral rights are in another state, do I need an accountant from my state of residence, or from the state that my mineral rights are in?

3. Where is a good place to find mineral rights specific accountants in my state (New Mexico or Arizona)? The NARO website’s page for my chapter is an error page (https://www.naro-us.org/Rockies). There are no accountants listed in the resources section here on this forum. Anybody have any leads?

thanks in advance for any help!

[M_Barnes]

1. For legal documents, you need an attorney. The structure of the entity will depend upon what you are trying to accomplish, how many heirs, etc.
2. You will need an accountant who is licensed to file in the state of the minerals and your state. For example, my accountant is in the state where most of minerals are located, but they are licensed to file returns in other states where I own minerals and where I live. They have to know the rules in all the states where I file returns.
3. There is probably a national association or state association of CPA’s that lists their specialty area-somewhat like the bar association. (The NARO Rockies chapter is undergoing a change, so bear with the process.) You can call the main number of NARO and see if they will link you to the current Colorado president who may be able to help you with some names in the area. He has a good network in the Four Corners area.

[HGW]

Thanks, M Barnes. I appreciate it!

[sclausen]

You need an attorney in your state who is an expert in trust and LLC planning and an attorney in the state where to minerals are located to prepare the required deed or deeds. It has been my experience that many CPA’s file state income tax returns in states in which they are not licensed. I would find one who knows federal tax law and let him or her decide if assistance is needed with out of state returns.