Great Grandpa and oil rich property...?

Question

My great grandpa owns one thousand acres of oil rich land. We already know it has oil on it. He just doesn't want to drill. He is on his death bed and I am only 13. How do I persuade him to drill... and who should he contact to add wells to his property?

Answer 1

He has no financial interest in drilling. I would not go there.

I hope he has an estate plan in place before he passes. If not, the entire estate, land and oil will go into probate and would likely get whacked by estate taxes. How much - try 1/2 of it or more.

I would have you family seek an estate planning AND maybe more importantly, an asset protection attorney to help here.

I would try and get the assets in a corporation where the beneficiaries are the people he wants to hand it down to minimize the estate tax. Corporations live forever and are not subject to estate taxes, only people are.

He should be gifting part of that land now to each of the beneficiaries. (see IRS gift tax rules)

You could tell him that the government (IRS) will seize the land and his estate within (I believe it is) 9 months after death if the estate taxes are not paid. The IRS can force (fire) sell the entire property.

I'd get some legal help quick.

If you secure the land. You can lease part of it out to oil companies who will take the huge expense of drilling. Keep in mind that the way drilling works, if you give them 100 feet to drill on, and they are drilling underground, they can suck oil from over 1000 acres away. Get some help on all business decisions.

Answer 2

Call ND Senator Byron Dorgan - he'll be glad to help!

Answer 3

have him sign the land over to you or your parents.. hes so old, just tell your parents to do it. you are too young and under age to do anything legally