Jackie earns a good living from the popular novels she has written. She sometimes worries about what will happen to her books when she passes away. After all, her copyrights were worth something, right? Jackie talked to her attorney, who suggested she include her intellectual property rights in her estate planning.
The Ownership of Ideas
Intellectual property (or IP) typically takes the form of patents, copyrights, trademarks, or service marks. It is sometimes defined as the “ownership of ideas.”
Patents are government licenses giving someone the exclusive right to an invention. Once granted by the US Patent and Trademark Office, patents remain effective for 14- 20 years.
Copyrights grant exclusive rights to someone who creates an original work, like a painting or a book. While a copyright exists from the time a work is created, it is advisable to register your copyright with the US Copyright Office.
Trademarks are words, phrases, symbols, or designs that identify a company or distinguish its goods from other goods. Service marks are similar but identify and distinguish a service instead of a product. Trademarks and service marks can last indefinitely as long as they remain in use.
Intellectual property may remain valuable long after the owner has passed away. For example, copyrights for materials created after 1978 now last for the author's life plus 70 years. The copyright laws for pre-1978 creations are more convoluted, but there still is a chance that copyright can generate money for your heirs long after you are gone.
But are patents, copyrights, and trademarks considered to be assets?
Any IP you own is an asset that may become part of your estate. Like anything of value, this type of asset should be included in your estate plan.
If the IP is not addressed in your Will or any trusts you have established, those rights will pass according to the intestate succession laws. This could prove costly, as the people who receive your IP assets may not know what to do with them. It’s important to address IP by choosing who will receive those rights. Fortunately, you can do that through your estate plan.
It’s important, though, that your Will or trust correctly deal with those important IP assets. For example, your Will should usually include details about your IP instead of lumping it into your residual estate.
You can transfer most IPs during your lifetime. However, that transfer could trigger gift tax issues. Depending on how you transfer the IP, you may lose control of your IP assets.
Protect
When legendary singer Prince died in 2016, his estate contained intellectual property rights estimated to be worth $300 million. He failed to leave a Will, though, and his estate has been in turmoil. If you have intellectual property rights, it makes sense to plan who will receive their benefit after you are gone.
At Beacon Legacy Law™ we help clients build a solid plan for their estates, one that fits their circumstances. Please contact us at 772-324-9050 to schedule an appointment or fill out our Contact Form. We are located in Palm City, Florida, and serve clients in surrounding communities like Stuart, Hobe Sound, Port St. Lucie, and Jupiter, too.
