Trust, LLC or TODD

Have visited several attorneys to discuss leaving my oil/gas mineral rights and producing properties to my son. I was given totally different recommendations! More confused than ever! Trust, form an LLC or do TODD! Very small interests in all properties! I originally inherited from my grandmother. Thanks for any input!

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There is not a blanket answer that applies to everyone. For example, for a family with a few children, a TODD might be a good answer depending upon on which state the minerals are located. For others a Trust makes the most sense and flexibility. Some worried about obtaining long-term care benefits from the VA or Medicaid, an irrevocable trust might be the ticket. LLCs can be effective, but those require some more complicated tax and “Corporate Transparency Act” compliance.

Visit with an attorney who understands estates, minerals and, if relevant, elder law issues.

This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.

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thanks for your reply. I have visited with several attorneys…who all gave different info. I just thought it’d be good to reach out on this forum for thoughts…Ive learned a lot over the years on this site.

What is a TODD? I currently have my minerals in a Trust.

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Transfer On Death Deed.

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Generally, I my preference is to put minerals into a revocable trust in most cases. This provides the flexibility and probate avoidance sought by most people. Also, it requires less maintenance than an LLC. Also, it has less chance of a beneficiary inaction error that comes with a TODD. But, there are times when the other routes are a better solution.

This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.

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This is going to be very dependent on state law, so take any advice you get here with a handful or two of salt. Generally, here in West Virginia, I’d put oil and gas rights into a trust, especially if my client already has one for estate planning purposes. But a TODD may do what you want as well. An LLC might be better for your purposes under your state laws. It’s really hard to say for sure.