Do You Need to Include Intellectual Property in Your Washington Estate Plan?
Estate planning is about identifying the people you want to receive your property after you die. Most of us only think about our tangible property (household goods, personal effects), real estate, or liquid assets like cash when making our estate plan. But if you own any intellectual property, you need to consider what will happen to that as well.
What Is Intellectual Property?
Intellectual property (IP) refers to several different kinds of intangible assets that a person or other legal entity may own. In the United States, the most common forms of IP are as follows:
- Copyright — This is an author’s exclusive right in a fixed literary or artistic work, such as a book or a musical composition. For individual authors, a copyright lasts for the lifetime of that author plus the 70 years following their death.
- Patent — This is an inventor’s exclusive right to reproduce, use, or sell their particular invention. Unlike copyrights, patents have much shorter terms, in most cases 20 years.
- Trademarks — A trademark or service mark identifies a unique good or service, respectively, actively sold in commerce. A trademark has no fixed time limit. It can last as long as it remains in active use.
- Right to Publicity — This is a person’s property right in their own “name, voice, signature, photograph, or likeness.” Unlike the other IP rights discussed above, the right to publicity is largely a function of state, rather than federal, law.
In terms of estate planning, IP rights are not that different from other types of property rights. For example, you can bequeath your copyright in a book you authored through your will. You could transfer your right to a patent on an invention you created to a living trust. Or, if you have a business that uses a readily identifiable trademark, you can incorporate the business so that it may continue using that mark long after you die.
It is important, however, to have a plan in place for transferring or otherwise disposing of your intellectual property rights. You may decide it is easier, for both your future estate and your loved ones, to simply sell your IP portfolio now and convert it into cash, which is much easier to distribute. Alternatively, if you are concerned about potential estate tax implications, you could transfer some or all of your IP to an irrevocable trust, which can remove such property from your future probate estate. You should also strongly consider having a qualified expert appraise the value of your IP so you can take that into account when making a plan.
Contact a Spokane Estate Planning Lawyer Today
When it comes to estate planning, you need to make sure it includes all of your property, including any IP. Our experienced Spokane Valley estate planning lawyers will be happy to advise you further on this and other related subjects. Contact Moulton Law Offices, P.S., today to schedule a free consultation. We serve clients throughout Spokane Valley, Kennewick, and Yakima.
