Why Sell Mineral Rights?
There’s a wide variety of reasons that you may choose to sell mineral rights oil royalties or gas royalties. Whether it’s for retirement funds or to help make your life easier, CP Royalties will work with you to ensure that you receive our best possible offer. A few of the most common reasons to sell mineral rights are:
Need For Immediate Cash To Pay Bills
Some owners choose to sell their rights in order to receive a lump-sum payment now to pay off bills, high interest credit cards or other debt rather than waiting years to collect lease bonus payments or monthly royalties.
A lump sum payment when you sell mineral rights, oil royalties or gas royalties may significantly supplement your retirement funds while reducing your risk exposure.
When emergency expenses arise, selling your mineral rights may help get you money quickly and easily.
College tuition can be very costly, and selling rights may help significantly.
Other Investment Opportunities
Selling your mineral rights and then investing the money into other assets that don’t deplete, such as real estate or diversifying your risk by investing in a stock portfolio or mutual funds.
Complexity of Managing Royalties
Managing your mineral rights, oil royalties or gas royalties can be time-consuming and many owners choose to forego the hassle, so they sell them in order to simplify their lives.
When you sell real assets, you will typically pay much lower taxes than you do when receiving bonus or royalty income. This will vary depending on your tax bracket.
Estate Issues or Liquidation
Typically, it’s easier to liquidate mineral rights while the owner is still living. Ownership of mineral rights in multiple States or in a State where the owner does not reside can also complicate things for their loved ones after their passing. It can be much easier when distributing cash assets to heirs than it can be to sell and/or divide properties following the owner’s passing.