My brother and I live in Arizona and we each own equal amounts of mineral and royalty ownership in Texas, Oklahoma and New Mexico. My brother is very ill and it is expected that he will not make it much longer than 6-12 months. My brother wants to transfer his mineral and royalty ownership to me so that I can manage it. The plan is that I would send him his portion of the royalty payments monthly. We want to avoid probate in the event of his death.
How do we transfer my brother’s mineral and royalty interests? What do we need to do?
In terms of incomes taxes, my brother’s portion of the royalties which I would receive and send to him would be reported as my income which will affect my tax bill. For tax purposes, how can I deduct my brother’s portion of the royalties from my income while he is still alive?
Thank you for any help you can provide.