Hello guys, first time poster hoping to get a couple of answers from you experienced folks. So the story is my great grandmother sold a house in Long Beach California (Los Angeles County) a long time ago, but retained the mineral rights. That deed got transferred over to my grandmother, and she is now looking to give me full ownership. I'm wondering what the best way to go about this is? Can this be done by filing a quitclaim with L.A. County?
Also, will there be any tax related issues that I would have to take into consideration? The last thing I want is to get hit hard with taxes and end up having to sell the deed, lol.
I appreciate any insight I can get on this. Thank you for your time!
California may throw a few curves but you should be able to.
Fed Tax wise you should be ok depending on the value of the Mineral Rights. She can gift you $13K a year without any Federal taxes. I'm not sure what California will tax. Any amount over $13k in one year could be subject to taxes depending on how you do it. Read up on the Unified Estate Tax Credits and gift taxes.
If it is non-producing and it is a small NMA it should be under 13K. If it is producing and valued over that, I would Gift the Mineral Interest on a different year than the Royalty interest in the well. :) Or gift the RI in parts per year. The spouses can gift and receive the same way.
If in doubt, talk to a estate planner for advice. A simple mistake can cost you 50-60% in taxes of the value over $13k.