Hi and welcome to Just Answer!.Timber rights are the ownership of the marketable trees on a particular property.Similarly - mineral rights ("mineral interest") - are the ownership of the marketable minerals that are extracted from the land.Both are parts of an estate in real property. The complete private ownership is known as a "fee simple estate". The property owner may sell or transfer partial rights known as "surface rights" and "subsurface rights".For tax purposes - partial rights to a real property are treated the same way as a fee simple estate - they may be sold, the seller will recognize a capital gain on the sale, and - yes - the beneficiary may get a stepped up basis in inherited timber and mineral rights.Let me know if you need any help.
Well, you have confirmed what I thought, but since these are fairly large numbers I figured that a second opinion is certainly worth any fee. It sure sounds right to me.