Minimizing Tax Impact of Oil and Gas Royalties

Written by about Ownership and Transfers + Royalties + Taxes on June 18, 2012

The impact oil and gas leasing has had on Ohio is remarkable.  A farmer who struggled to make ends meet one year could find himself with an income tax bill he never imagined the next.  Though we Ohioans have been blessed by these essential resources, allocating their value can be troublesome from a financial standpoint.  Many people may find themselves unsure of what to do with signing bonus money.  It doesn’t take a financial adviser to outline the basic options: save it or spend it.  Prudence dictates the best of these two options.

Everyone’s financial situation is different.  However, people from all types of situations certainly have people that they care about and would like to support if they are able.  We firmly believe that one’s most valuable assets are their family members and loved ones.  Sharing the benefit of oil and gas leasing monies and royalties with children, grandchildren and others can be accomplished in a number of ways.  Choosing the method right for you and your family takes experience, especially when the tax man becomes involved.    The threat of federal taxes increasing seems almost constant.  State laws can change, too.  Have you recently become the beneficiary of oil and gas monies?  If so, contact an attorney today for a basic estate plan that can ensure that your loved ones can share in this blessing when they might need it most.

About Nils Johnson

NILS P. JOHNSON, JR. graduated with honors from Dartmouth College and in 1976 graduated from Boston University Law School. He practices in the areas of estate planning, probate, business law, oil and gas, and real estate, and is a frequent lecturer on estate planning and legal ethics. He has been certified by the Ohio State Bar Association as a Specialist in the field of Estate Planning, Trust and Probate Law.