Generations of wealth in Marcellus shale.

• Author: Bakale, Anthony S.

Beneath some of the most beautiful areas of the United States lies wealth beyond some people's wildest dreams. States such as New York, Ohio, Pennsylvania, and West Virginia have regions that contain Marcellus shale, a sedimentary rock that contains natural gas. This rock is now being sought in order to extract that valuable resource. Many believe that the highest production potential can be found in the northeastern and north-central regions of Pennsylvania.

Many in the Marcellus shale areas are being faced with difficult financial decisions due to the newfound wealth associated with the sudden interest in the Marcellus formation. Because of new drilling techniques, the natural gas industry has struck deals with many landowners in order to obtain drilling and mineral rights to their property. Landowners who signed the lease agreements, as well as those who are contemplating signing a lease, need to look ahead for ways to keep these benefits continuing into the future. With proper planning now, future generations will still be reaping today's rewards.

Key Items to Consider

Many people avoid estate planning because of the complexities involved, and also because of the difficulty in facing their own mortality. But there are some basic steps individuals can take to lessen the various types of pain associated with these issues.

Make Sure a Will Is in Place

Like many individuals in the United States, those who have signed gas leases may never have thought that they needed a will. However, these individuals worked for their assets and now would probably like to dictate where their assets go after their death. Without a will, the intestacy laws of the resident state will generally determine how the assets will be distributed. Further, if any of these individuals have young children, a will can name the guardian(s) of those children should the individual pass away while the children are still minors.

Use Time Wisely

One of the most important things for taxpayers to remember about estate planning is to use their time wisely. As each year passes they will lose valuable planning opportunities. One example that demonstrates the importance of proper timing is the use of annual exclusion gifts to individuals. For 2010, the exclusion amount is $13,000-a taxpayer can gift up to $13,000 to an individual without incurring gift tax. When 2011 comes around, he or she can gift the annual exclusion amount again to the same person. Over time, proper gifting of...