U.S. Royalty Trusts
By: Tim McPartland,
U.S. Royalty Trusts are another ‘pass through’ vehicle available to get income from the corporation to the individual with only 1 level of taxation (the individual income tax).
Trusts have no employees
Own no land or any other hard asset, except the right to receive either a percentage of net income or revenue from a production asset someone else owns
Trusts have a finite life–either when a certain amount of asset (oil, gas etc) has been extracted from the ground, a certain period of time has passed or in some cases determined upon the death of certain individuals
Below is our Master List of U.S Royalty Trusts
The Trust listed below trade on various stock exchanges in the United States
Trusts trade on the basis of income–thus it is important to know not just what the most recent income is, but what income the immediate quarters just ahead are expected to generate.
Understand the terms of the Trust. On most of the trust websites you can find the terms of the trust. Since trusts have a finite life you must know the details of the trust. Depending on the most recent distribution for a buying decision is a certain way to lose money on your trust investment.
Note that some of the trust pay quarterly distributions while other pay monthly.
Caution–Great Northern Iron Ore (ticker:GNE) has paid its last quarterly payment and will be liquidated effective April 6, 2015 after 109 years. A final payment of an unknown amount will occur.