Article on Advising Donors and Managing Gifts of Oil, Gas and Mineral Interests

Megan C. Sanders (Associate, Bourland, Wall & Wenzel, P.C.) recently published an article entitled, It’s Tea Time – “Texas Tea” Time: Advising Donors and Managing Gifts of Oil, Gas and Mineral Interests, 7 Est. Plan. & Community Prop. L.J. 237 (Fall 2014). Provided below is an excerpt from the introduction to the article: 

Here in Texas, we have a strong attachment to out mineral interests–when someone offers us a royalty interest, we are not likely to decline. But advisors and directors of charitable organizations do not always understand and welcome a gift of mineral interests, due to the uncertainties of how to manage and dispose of these interests within the fiduciary duties and the charitable goals of the organization.

. . . .

A whole mass of questions and uncertainties spring up when approached with a gift of such nature, or when this type of gift is handed over by an administrator of an estates part of a testamentary disposition. This article addresses these uncertainties, provides strategies for managing these concerns and working with donors, and discusses the most challenging issues presented to charitable organizations when considering the receipt of a unique gift such as mineral interest, including whether to accept the gift, how to value the property, whether to retain or sell the interests, how to dispose of the items if such decision is made, and what income or excise tax consequences may arise from accepting that type of gift.