It's not worth spending thousands of dollars in legal fees in Kansas to claim a virtually worthless interest in an oil well.
Q: My parents died several years ago. I inherited a tiny, virtually worthless interest in an oil well in Kansas. I never did probate in Kansas since this was the only asset they owned there. So the interest remains in their names. The tax office in Kansas continues to assess $6.95 of taxes each year. I have told them they are both dead, but they still send the tax bills. Is it safe for me to ignore these bills? Can I abandon the interest?
A: Yes, you can ignore the tax bills and essentially abandon the interest.
TAX CHANGES: Gift and estate tax rules are changing in 2024. Here's what you need to know.
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No one would ever fault you for not spending thousands of dollars in legal fees in Kansas to claim a virtually worthless interest in an oil well.
Countless numbers of heirs in every state across the country never claim their inheritances, even when those inheritances have significant value, so you would not be doing anything different from many other people.
The Kansas tax office is certainly not going to hunt you down here in Texas in an attempt to force you to pay the $6.95 tax bills. They have more productive things to do with their time.
As a probate attorney, I have seen this many times. Quite often, clients have inherited mineral interests that pay little or nothing each year, and for generations no probates have ever been conducted by their parents, grandparents and great-grandparents. Much of the time, these clients have no idea what they actually own.
Q: I'm 82 and my wife is 77. Our only daughter died without heirs. Our net worth is over $1 million. Our lawyer told us that as long as we both don't die simultaneously, we don't need wills. Is this right? Should I sign a will that says what happens if we die together? Will our executor be required to probate the will? How can probate be avoided? Together, we have approximately 15 heirs (siblings, nephews, nieces, and their children and grandchildren).
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A: I can't imagine why an attorney would advise you that you and your wife don't need wills if you don't die together.
First of all, it is rare for two people to die together. In the vast majority of cases, spouses die at different times.
It is possible, depending on what the two of you own, that probate will be needed at the first spouse's death. If so, that spouse should have a will leaving everything to the survivor, and possibly with some specific bequests to various family members or other people or charities.
And at the second spouse's death, there will almost certainly be a need for probate so that all of your family members can receive their inheritances. That means the surviving spouse also needs to have a will.
To avoid probate at both of your deaths, the two of you could set up a living trust. Talk to an estate planning attorney (not the attorney you got advice from earlier) about the best way to plan your estates.
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The information in this column is intended to provide a general understanding of the law, not legal advice. Ronald Lipman of the Houston law firm Lipman & Associates is board-certified in estate planning and probate law by the Texas Board of Legal Specialization. Email questions to: stateyourcase@lipmanpc.com.
I inherited a worthless oil well, do I have to pay taxes on it?
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09.01.2024
It's not worth spending thousands of dollars in legal fees in Kansas to claim a virtually worthless interest in an oil well.
Q: My parents died several years ago. I inherited a tiny, virtually worthless interest in an oil well in Kansas. I never did probate in Kansas since this was the only asset they owned there. So the interest remains in their names. The tax office in Kansas continues to assess $6.95 of taxes each year. I have told them they are both dead, but they still send the tax bills. Is it safe for me to ignore these bills? Can I abandon the interest?
A: Yes, you can ignore the tax bills and essentially abandon the interest.
TAX CHANGES: Gift and estate tax rules are changing in 2024. Here's what you need to know.
Advertisement
Article continues below this ad
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