Two Types of Term Royalty Deeds:
- Time-based: Create a term royalty deed for a specified period of time to fund a specific Texas A&M program. Example: Your mineral royalties are paid to the Texas A&M Foundation only for 12 months. If your royalty payments reach $25,000, the Foundation will invest the total gift in an endowment that funds the program of your choice.
- Dollar-based: Create a term royalty deed for a specified dollar amount. Example: Your mineral royalties are paid to the Texas A&M Foundation until they reach a dollar amount that you specify in order to fund a specific scholarship or program. The Foundation will invest royalties that reach $25,000 in an endowment that supports your gift beneficiary.
Other Ways to Give Using Mineral Interests:
Use cash generated from mineral royalties to fund a gift (outright, charitable remainder unitrust
or charitable gift annuity
), in which case you receive a charitable deduction. You will owe income taxes on the royalties since you received those royalties as income.
Transfer your mineral interests to the Texas A&M Foundation during your lifetime and receive a charitable income tax deduction.
Create a bequest
that would transfer your mineral interests to Texas A&M after your lifetime.
Like all gifts created through the Texas A&M Foundation, yours may be directed to a scholarship, to assist faculty or to enhance a specific college or student program. The endowed gift will be invested wisely to produce revenue into the future. It will also create a legacy for you, your family or for a special person you wish to honor.