Trust-held Special Assets: Oil, Gas, and Mineral Interests

Nov 1, 2022 | Special Assets

Oil, gas, and mineral interests are an ever-relevant asset class. Due to technological advances like horizontal drilling and fracking, vast deposits of oil and gas across the country are now producing in commercial quantities. Whether it is decades-old coal production in West Virginia or newly discovered oil horizons in the Permian Basin of West Texas, Cumberland Trust’s directed trustee platform allows these holdings to be appropriately administered under a trustee structure that not only maximizes the value of the trust-held assets, but also promotes good stewardship.

Oil, gas, and mineral interests are a prime example of legacy assets. The age-old adage of “never sell your mineral rights” has endured for generations. Due to the trans-generational nature of these “special assets,” many families have experience in the natural resources industry or have the requisite expertise to manage these legacy holdings within their own family unit.

As an independent directed trustee, Cumberland Trust is well-positioned to understand and help families retain unique special assets held in trust. We specialize in education, administration, and client service, while the client’s chosen professional advisors manage the trust’s assets. This distinct difference sets Cumberland Trust apart from other corporate fiduciaries and allows us to focus on providing our clients with high quality, personalized trust and estate administration services.

Cumberland Trust has a dedicated Special Assets team comprised of professionals who have years of experience working with complex assets, such as oil, gas, and mineral assets. Our team coordinates the special asset management in conjunction with an external asset manager selected by the client(s). The asset manager can be a family member, third party individual, or a professional mineral management company. This arrangement empowers clients to remain involved with the special asset management. For families who prefer the assistance of a professional management service for their special assets, Cumberland Trust has worked extensively with multiple professional vendors and can facilitate introductions. By having a dedicated “property manager” in place, trust assets can be properly managed with industry and local expertise available for lease negotiations, division order analysis, royalty payment audit, ad valorem tax payments, etc. Cumberland Trust’s Administration and Special Assets teams work in tandem with the designated property managers to ensure that mineral interests are administered efficiently.

Oil, gas, and mineral interests continue to be an important piece of Cumberland Trust’s book of trust-held special assets. Whatever your family’s goals, Cumberland Trust is committed to helping you reach them. We offer the expertise, unbiased support, and the consistency you deserve, and we are devoted to helping you protect your family’s legacy.