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.
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.
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.