Sunday, December 18, 2011

Is Money paid to a Trust to search for Oil/Gas Taxable?

My deceased father has a Trust that is owner of our family cabin. Now an Oil Company is going to pay $1,000/acre to search for oil/gas and a 2% royalty of any oil/gas produced. Is the $1,000/acre taxable to any of the family or would it be distributed through the Trust tax free like his original possessions?

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