Estate Planning: When a family member dies, royalty interests typically complicate the handling of an estate. Properties split between many heirs often have little value and a great deal of paperwork. In addition, the legal cost or costs to maintain the property may total more than the value of the property itself. Paperwork: The often overwhelming avalanche of paperwork, including complicated records of income, 1099s, county, state and federal taxes required to manage a property is often a stressful burden for someone who is not a professional mineral manager. Cash Flow: Selling your royalty properties may be an attractive option when there is a need for cash or if the income from the property is not a significant part of your total income. Oil and Gas wells are a depleting asset. Think of it as a form of mining. Each month that your wells produce, there is less oil and gas left in the ground. Selling your royalty income may provide you with cash to place into other investments that may grow overtime, versus deplete. Copyright © 2005 Southwest Petroleum Company. All rights reserved.