Immediate Payments
Oil and gas royalty income is unpredictable. Wells will deplete over time and oil and gas prices will fluctuate greatly. Therefore, by selling your minerals/royalties you are guaranteeing a positive outcome and taking the guessing game out of the equation. Dinami can typically complete purchases within 10 business days.
Diversify Investments
The volatile Oil and Gas market makes it hard to rely upon for a steady return. Diversify your portfolio into stocks, bonds, real estate, or an annuity which may provide yourself and your family a more reliable investment.
Estate Planning
In some cases it is better to sell a property now rather than have it become part of your taxable estate and create unnecessary burdens to your heirs when there is a need for disposition.
Paperwork
Division orders, the selling of your minerals from one company to another, tax receipts, production statements and 1099’s may be an unneeded burden on your time and causing you additional expense i.e. accountant.
Taxes
Aside from federal and state income taxes, the properties are also burdened with severance taxes. A sale for a lump sum payment may be taxed as a long term capital gain subject to a lower tax rate than ordinary income.