Got Intellectual Property? Include It In Your Estate Plan

You don’t have to be a famous producer or household name to own intellectual property. If you create music, own a business, write stories, or build gadgets in your garage, you almost certainly have intellectual property. However, because intellectual property is intangible, it’s often overlooked in estate planning.


And if you do have intellectual property, it may hold significant sentimental and even monetary value for you and the people who love you. Without properly planning for these works in your estate plan, your family could lose these valuable assets forever.

Even if you’ve worked with a lawyer to set up your business, write a will, or file your taxes, those professionals may not be thinking about what happens to your intangible assets upon your death. Many lawyers who focus on estate planning don’t really understand the value of intellectual property and how to protect it. We do, and now so will you.


It’s essential that you take the proper steps to not only protect these intangible assets during your lifetime but also ensure that your intellectual property is properly handled following your death. That way, the monetary and human value of your intellectual property isn’t lost forever when you die.


Safeguard Your Intellectual Property During Life

While you might think that identifying, protecting, and valuing your intellectual property is something that only applies to big companies and famous artists, that’s definitely not the case. Your intellectual property has sentimental value to your family and may have more monetary value than you realize, and could be of even greater value to your loved ones after you’ve died.


The first step to take in protecting your intellectual property is to formally document it in an inventory of assets that describes what the asset is, where it’s located, and how to access it if it’s a digital or intangible item. This is something I help all of my clients create to ensure that no asset, whether tangible or intangible, is left out of their plan or lost when they die. 


The next step is to consider if any of your intellectual property should be legally registered in the form of trademarks, copyrights, or patents with the U.S. Patent and Trademark Office. Original works are automatically copyrighted when you create them, but without legally registering your copyrights, it can be difficult to prove and enforce your copyright if someone steals your work and presents it as their own. If you’re lending, renting, licensing or selling anything you’ve created to a third party, it’s also important to have the proper legal agreements and contracts in place to ensure there’s no question about who owns the material.


Likewise, if you own a business and have not protected your intellectual property with copyrights, trademarks, patents, royalty and licensing agreements, non-competes for employees, and work-for-hire provisions in your existing agreements with independent contractors and vendors, now is the time to do so.


Don’t wait until your intellectual property is stolen or you receive a cease-and-desist letter to put these protections in place. Registering a trademark or copyright might cost you time and money, but failing to register your original works can cost you far more than that in legal fees or the lost value of your assets, especially if your family ends up in court trying to fight for what you created.


Protect Your Intellectual Property for Future Generations

In addition to protecting your intellectual property during your lifetime, it’s equally important to plan for what will happen to these assets at your incapacity or death, and to protect your heirs from a potentially long and costly court battle over the ownership of your intangible assets.


The most important thing is to make sure that your family can locate and access your intellectual property after you’re gone. Otherwise, your work could be lost forever. 


Once you’ve created an inventory of your assets, you’ll need to make sure your loved ones know how to find your inventory so that if you die or become incapacitated they can easily locate and access your assets. Your inventory should also include how each asset is accounted for in your estate plan and whether you share ownership of any intellectual property with another person or company. 


To make sure all of your assets are planned for in the right way, it’s imperative to meet with an estate planning attorney who has the experience and knowledge to plan for your intellectual property and protect any future income the property may generate for your loved ones.

Your attorney should help you plan for each asset, who will inherit it, how its value will be distributed, and how income generated from it will be used, all while avoiding the need for a long and costly probate proceeding. 


If you think this all sounds overly complicated, imagine how much more difficult it will be for your loved ones to deal with it should something happen to you. In fact, it could prove impossible for your loved ones to handle these matters in your absence, which is why it’s so important for you and your legal team to take care of these issues now. That way, your family isn’t stuck trying to clean up your mess after your death.


Planning for All of Your Assets, In The Best Way

While you might not be a famous author, artist or musician (yet), you very well may have valuable intellectual property, and chances are that property has not been properly documented or accounted for in your estate plan. Besides monetary value, your pieces of intellectual property are unique creations that reflect your heart, soul, and personality that your family will cherish for years to come.


To make sure all of your assets are protected and planned for, including your intellectual assets, give us a call. As your Personal Family Lawyer® firm, we offer expertise in documenting, valuing, and protecting your intangible assets so your loved ones can benefit from these creations for generations to come.


Click the link to schedule a free 15-minute call with me to learn more.

Schedule
Tammy Sylvas — Grapevine, TX — Silvas Law, PC

This article is a service of Tammy Silvas, Personal Family Lawyer®. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. We also offer a LIFT Business Breakthrough Session™, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.



The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Wine & Wills ~ Thursday, May 30th @ 6:30pm

By Tammy Silvas • 09 May, 2024
NEWLY added event location is at Landon Winery in Cypress Waters. You will learn the difference between Wills & Trusts as well as other legal instruments that are just as viable today as they will impact the future. CLICK to learn more and register!

Estate Planning for Real Estate Professionals & Investors June 13th @ 6:30

By Tammy Silvas • 08 May, 2024
When: Thursday, June 13th @ 6:30pm Location: TBD REGISTER NOW!

Mimosas and Wills ~ Saturday, June 15th @ 10am

By Tammy Silvas • 06 May, 2024
When: Saturday, June 15th @ 10am Location: TBD REGISTER TODAY More details below.

Using Credit Cards to Fund Business Growth: What Entrepreneurs Need to Know

By Tammy Silvas • 04 May, 2024
One way to secure business funding is with credit cards. But making an informed decision about business credit can be difficult. So let’s explore what you need to know about using credit cards to fund your business, so you can do so wisely and with as much ease as possible. Read more…

What Happens To Your Social Media Account When You Die?

By Tammy Silvas • 04 May, 2024
Ever wondered what happens to your social media accounts after you pass away? Each social media platform has its own rules, so understanding these options is essential for managing your digital accounts responsibly. Read more…

Effective Communication for Effective Leadership: A Guide for Entrepreneurs

By Tammy Silvas • 03 May, 2024
"The importance of effective communication..."

Why Estate Planning Is the Best Use of Your Tax Refund

By Tammy Silvas • 01 May, 2024
So you got a tax refund this year. Hooray! While you may be tempted to spend it on a vacation, or put it away for a rainy day, there’s an even better way to put that refund to work for you: estate planning. Here’s why. Read more…

Tacos, Trusts & Margaritas - Tuesday, May 7th @ 6:30pm

By Tammy Silvas • 25 Apr, 2024
When: Tuesday, May 7th @ 6:30pm Location: Blankenship Center/Grapevine Chamber 200 Vine Street, Grapevine, TX 76051 REGISTER TODAY More details below

Improve Your Financial Fitness and Grow Your Business With Confidence

By Tammy Silvas • 21 Apr, 2024
Most people think “fitness” only relates to physical health. But that’s not the case! Financial fitness is important, too, especially for entrepreneurs. When you have strong financial fitness you can grow your business with confidence. Read more…

Navigating the World of Cryptocurrency: A Guide for Parents and Teens

By Tammy Silvas • 21 Apr, 2024
In an era where digital innovation shapes every aspect of our lives, it's no surprise that our teenagers are drawn to the allure of cryptocurrency. But before they venture into these waters, parents should be prepared to help them navigate this new world. Read on for more…
More Posts
Share by: