Usually, this blog concentrates on tangible assets such as money and real estate, and how estate planning laws govern their disposition after the person who owns them passes away. This blog will instead address one type of intangible assets, intellectual property (IP).  I will also give a quick overview of how IP relates to estate planning.

Let’s first define intellectual property. Of course, this is simply a broad overview, and nothing in this blog should be taken as advice. Simply put, IP is an intangible “thing” or entity that is a result of intellectual or mental activity.  It’s something that is a result of a person’s creativity or thinking. Examples of IP can include copyrights, trademarks, patents, even secret recipes.  Intellectual property may also be legally licensed for a specified period to a specified person. For example, the owner of a t-shirt company may acquire the necessary license to use a trademarked design, image, or logo on their products for a specified time.  Think about special events, sports championships, any limited-edition items, and you’ll get the idea.

From this point, you can probably deduce that ownership of intellectual property can be a tremendous financial asset, one that the owner may want to pass along to loved ones after the owner’s death. That’s where an estate planning attorney like me can become part of the process, because IP assets may be included in a will or a trust.  Of course, there are many complex issues accompanying the inclusion of IP in an estate plan, such as taxes, valuations, duration of the license, and the ability of the designated beneficiary to manage the responsibilities of owning IP.

Events such as bankruptcy and divorce may also impact intellectual property.  Owning IP can be very lucrative, that’s true, but it obviously is not something an owner, trust grantor, or even a potential beneficiary should ever take lightly.  Proper legal directives are essential to protect the IP and the people who are its “caretakers.”  I can offer my advice as an experienced estate planning attorney, on issues like these and on other questions you may have about wills, trusts, and more.  Want to talk?  Just give me a call to set up a consultation, at your convenience, at 818.956.9200.

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