Entertainment professionals spend years building a career based on intellectual property, whether it is music, film, or a piece of writing. Your works, from songs to scripts to designs, may represent a significant portion of your wealth or income. But have you ever considered how these assets will be treated when it comes to estate planning? Is intellectual property considered an asset in your estate? The short answer is: yes, but with some important nuances. Let’s take a closer look.
Intellectual property refers to intangible creations of the mind, such as inventions, commercial designs, and literary or artistic works, that are protected by law. These protections can be acquired through registration of a copyright, patent, or trademark, which will prevent other people from benefiting financially from use of your work. If you haven’t already registered for these protections over your intellectual property, call our IP attorneys at Lomnitzer Law to ensure your work is properly registered.
Intellectual property is, in fact, considered an asset in your estate, the same as physical assets like real estate, cash, or vehicles. When you pass, your intellectual property will be inherited, either according to your will or your state’s intestate laws. Once it becomes the property of your beneficiaries, they can continue to receive income from the IP, and they can do with it how they wish, unless you have left specific instructions in the form of a trust.
It is crucial that you take the necessary steps to ensure your intellectual property is effectively incorporated into your estate plan. Our attorneys understand the nuances of entertainment law and IP, and can help you structure this part of your estate plan to account for your creative assets. An important part of this is creating a will or trust, which specifies who will inherit your IP, and how it will be managed after your passing. We can also walk you through a licensing strategy that can generate passive income for your estate, and limits the active management role. Lastly, we can ensure that your IP is properly valued, which can help to avoid potential tax issues and ensure fair distribution of your assets.
Intellectual property is absolutely an asset in your estate, but it does require some thoughtful planning to ensure it is properly managed after your passing. If you have questions about how to incorporate your intellectual property into your estate plan, or if you need help creating a tailored strategy, don’t hesitate to reach out to our experienced team. We will be here to guide you through every step of protecting your creative legacy.
