If you are the owner of real property that is the subject of an oil and gas lease, you should strongly consider forming a family limited partnership or limited liability company to be owned by you and transferring such property and the oil and gas lease to such entity. In addition to obtaining greater liability protection, you can also achieve certain estate planning goals on a tax efficient basis through the gifting of passive ownership interests in the entity to your children or others. Alternatively, if you already took those steps with respect to your property, you should consider having your ownership structure and corporate documentation (i.e. the Limited Partnership or Operating Agreement governing the management and operation of the entity) revisited in light of certain changes to the corporate and tax laws over the last several years.
Rosenn, Jenkins & Greenwald regularly assists property owners with these types of issues. If you are interested in learning more about these issues, please contact Paul T. Rushton, the Chair of our Business & Finance Department (email@example.com). We will be pleased to assist you with these important considerations.