Taxes on inherited mineral rights?

So, if I leave my mineral rights to my granddaughter does she have to pay taxes on them when I die?

A question for your accountant as many factors regarding your estate need to be taken into account. She will get a new step up value as of the date of death. That will help on capital gains tax if she ever sells. If she received royalties, then she will pay the taxes associated with them. Whether your estate pays taxes needs to be answered by the accountant.

Oklahoma does not have an estate or inheritance tax. The federal estate tax is imposed on estates that exceed $12.06 million in 2022. Therefore, most individuals would not incur and estate tax especially if you are a resident of Oklahoma. However, if you live an state that has estate and/or inheritance taxes your answer may be different.

You should explore ways to avoid probate with your estate planning attorney by transferring the minerals to your trust, or if you do not have a trust by the use of a Transfer on Death Deed.

This post is not legal, investment or tax advice, it is for discussion purposes only. Reading or responding to this post does not create an attorney-client relationship.

Sounds good to me. So far,at least. I hear that the Democrats want to nix the step-up at death.