The Overlooked Link Between Intellectual Property and Estate Planning

MARK TERRY, ESQ.

In today’s knowledge-driven economy, intellectual property is often among the most valuable assets an individual can own. Copyrights, patents, trademarks, trade secrets, licenses, and royalty rights can generate income and long-term wealth.

Many creators, entrepreneurs, and innovators nevertheless overlook a critical step: including those assets in their estate planning. Without a clear plan, ownership rights may become entangled in uncertainty or may be neglected entirely.

Like real estate or financial accounts, intellectual property can pass to heirs when the transfer is properly documented. Failing to plan may result in lost royalties, family disputes, missed maintenance deadlines, or the expiration of rights.

An effective plan begins with a complete inventory of registered rights, pending applications, licensing agreements, revenue streams, and related contracts. Heirs and fiduciaries need to know what exists, where records are located, and how each asset creates value.

Copyrights can last decades beyond the creator’s lifetime, while trademarks can potentially continue indefinitely if they are maintained and used properly. Those assets require a responsible person or professional manager to oversee renewals, enforcement, and licensing.

Patents have defined terms and may require strategic commercialization during their remaining life. Licensing agreements and royalty rights should also be reviewed to ensure that beneficiaries and management instructions remain current.

In some cases, a trust can hold IP rights, avoid probate, protect assets, and provide detailed instructions for ongoing commercialization, licensing, or charitable use.

Tax planning is another important consideration. Intellectual property can create valuation issues and future income streams that affect estate and beneficiary planning.

As AI, software, digital content, and online businesses continue to expand, the line between conventional property and intellectual property becomes increasingly important. Creators and business owners should treat IP as a core estate-planning asset rather than an afterthought.