Updated: 05.05.13 Hello, My name is Todd Johnson. I’m a family man, sports fiend, health nut, technology buff, long-time stock investor and a very lucky mountain climber – hardly enough to completely distinguish me from many 50 year-old males living in Albuquerque, or anywhere else for that... More
"Delaware's law on statutory trusts recently became the model for the entire country to follow. Practitioners and investors increasingly use the unique features of the this newest form of entity for tax deferral, asset protection and other advantages. Edited by Charles J. Durante and Brian M. Gottesman, this manual guides attorneys through each step of the process from formation to dissolution, and includes detailed tax analysis."
Instablogs are blogs which are instantly set up and networked within the Seeking Alpha
community. Instablog posts are not selected, edited or screened by Seeking Alpha editors,
in contrast to contributors' articles.
Thanks Todd. I'm currently trying to evaluate if there is any merit to hanging on to a trust through liquidation. Of course it depends on what exactly each trust owns, including acreage, location, and what types of mineral rights, etc. And there's always the risk of the rules changing...Good stuff.
Bluesmoke, good question. Recent trusts will serve me through my life span....so I am likely to hold on. If there is any residual value, they have my account # to send payments. ;)
I never hold just for this reason.
There are, on the other hand, some trusts I know that are approaching liquidation time. Investors don't seem to know this. The company has stated liquidation prices - so they are clearly over paying in certain cases.
I wanted to pass on something I learned today. After being sucked dry many of those old wells can be used as future gas storage facilities. Given the proliferation of shale gas coming online, this is certainly something to consider before bailing out.
Bluesmoke, thanks for the heads-up. I'm in the trusts for the long haul - but there are clearly some trusts with decreasing production. One's cost basis would determine if it made sense to hold on.
I appreciate the insights. Shale gas is definitely on the rise...
Todd, What is your opinion of the Steelpath MLP ETF? Is it any worse or better than energy trusts? It avoids a lot of paperwork compared to holding individual MLPs. Thanks
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.
U.S. Statutory Trusts Information Page 9 comments
U.S. Royalty Trust
http://en.wikipedia.org/wiki/Royalty_trust
Mineral Royalty Trust Transactions: The Use of the Grantor Trust to Avoid Corporate Income Tax; Gelinas, A.J. Alex
http://heinonline.org/HOL/LandingPage?collection=journals&handle=hein.journals/taxlr37&div=14&id=&page=
Delaware Statutory Trusts Manual
http://www.lexisnexis.com/store/catalog/booktemplate/productdetail.jsp?pageName=relatedProducts&prodId=prod12690326
Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.
Share this Instablog
This post has 9 comments:
I never hold just for this reason.
There are, on the other hand, some trusts I know that are approaching liquidation time. Investors don't seem to know this. The company has stated liquidation prices - so they are clearly over paying in certain cases.
I appreciate the insights. Shale gas is definitely on the rise...
For who?
What is your opinion of the Steelpath MLP ETF? Is it any worse or better than energy trusts? It avoids a lot of paperwork compared to holding individual MLPs.
Thanks
I'm looking for the symbol but all I see are mutual funds (loaded). http://bit.ly/vTQsJC
Is there an ETF? I don't see a symbol. I can understand using an index, but not a loaded MLP. There are CEF's MLP's to avoid tax issues.
I don't know steelpath.com products, but if it's loaded - then I wouldn't touch it.
TJ
This what you are looking for?
Latest Followers
StockTalks
-
Is there any risk in the market when Bernanke buys $85b in QE19? Will Bernanke ring a bell for us? dividendlab.com
May 7, 2013
-
$AAPL Breaking News Repeated Every Day. 50,000 Analysts Parroting the same info day-after-day. Hopefully media frenzy ends.
Apr 24, 2013
-
$HCP, $HTA, $VTR 3 Healthcare REITs For Dividend Investors http://bit.ly/XAFndA
Apr 14, 2013
More »Latest Comments
Most Commented
Posts by Themes