Enormous Passive Income = Massive Income Taxes
The first thing oil and gas sudden wealth does is create an enormous passive income which in turn creates massive income taxes. With our team of accountants and attorneys we create a strategy that can lower this burden up to hundreds of thousands of dollars every year.
Texas Eagle Ford Shale
When the Eagle Ford shale was discovered in South Texas, the subsequent fracking drastically changed thousands of lives almost overnight. South Texas farmers and ranchers now have completely different worries and problems with the onset of sudden wealth. The dream of acquired wealth and comfortable living soon shows its true disposition. Huge taxes, stress, greed, family problems, spiritual issues and charitable issues are a few of the life changing problems that go hand-in-hand with new found or sudden wealth. This phenomenon, called “Sudden Wealth Syndrome” or “SWS,” creates new challenges and obstacles for families that are almost always unprepared for these occurrences.
Sources of Stress
There are many sources of stress that come from the onset of sudden wealth from the Eagle Ford shale. All of this newly gained wealth is soon scrutinized and nearly half of the royalties from the Eagle Ford shale are being claimed by the government.
The family land that once provided sustenance in the form of a pasture or a crop has been forever changed by the drilling. The dozens of family members who need financial help can begin to cause feelings of guilt or isolation. The new responsibilities that come with having wealth, the expectations, the sleepless nights, the huge income taxes, trying to decide how and where to help others, deciding how the children will be affected – all of these anxieties eventually come to a head. These are things that a working class farmer or rancher is thrust into very quickly and without preparation.
Many people are still inclined to the illusion that all problems can be treated with more wealth. These Eagle Ford families, though grateful and blessed, have seen that lasting peace and success does not come with just wealth, but can only come with God’s will carried out in one’s life. This Sudden Wealth Syndrome is a byproduct of God’s blessing that must be handled with grace and wisdom.
CIS Wealth Management Group believes that wealth is a gift that God bestows. The managing of new found wealth should be carried out with discernment, wisdom, and care. We help families gain an understanding of all these Wealth Management issues by collaborating with a team of autonomous professionals.