How Should Intellectual Property Be Addressed in an Illinois Estate Plan?

Intellectual property (IP) can sometimes be overlooked during the estate planning process. However, these assets can be among the most valuable parts of an estate. Authors, artists, inventors, or entrepreneurs who own intellectual property will need to understand the value of these assets, the steps that may be taken to protect their family’s financial interests, and the best options for addressing these concerns in an estate plan. By doing so, a person can ensure that his assets will be managed according to his wishes both during his lifetime and after he passes away. An attorney with a strong understanding of the legal and financial issues related to IP can ensure that these issues will be addressed correctly during the estate planning process.

The Importance of Including IP in Your Estate Plan

Intellectual property can include digital or intangible assets that can be very valuable, and they may generate income for their owners. In addition to monetary value, these assets may also hold significant sentimental value, making them a key concern in estate planning.

Types of Intellectual Property

IP may include multiple types of intangible assets such as:

• Copyrights: Original works of authorship may be protected, giving a person the right to reprint and resell what she has created. Copyrights typically protect literary, dramatic, musical, and artistic works.
• Patents: This form of IP may be issued for new inventions, giving the inventor exclusive rights to use the invention in consumer products or license the invention to others.
• Trademarks: Symbols, names, and slogans that are used to identify goods or services may be protected, ensuring that there is no confusion for consumers about the source of these products or services.
• Trade secrets: Confidential business information that may provide a competitive edge should be protected. This form of IP can be crucial for ensuring that a business can continue to operate successfully

Including IP in Your Estate Plan

To ensure that your intellectual property is handled correctly through your estate, you can take the following steps:

1. Identify your intellectual property: Make an inventory of all IP that you own. Determine whether these assets are properly registered (if applicable) and note their current value as well as their potential to increase in value or generate income in the future.
2. Decide on your goals for each asset: Consider how you want different forms of IP to be handled. Do you want your copyrights to be transferred to a family member? Should your patents be sold or maintained? Should trade secrets be addressed in a business succession plan? Understanding your goals will guide the estate planning process.
3. Utilize legal tools: Several legal mechanisms can be used to handle intellectual property in an estate plan. Wills or trusts may provide for the distribution of these assets to different beneficiaries, and powers of attorney may be used to ensure that IP will be managed correctly if you become incapacitated.
4. Consider tax implications: Intellectual property can create significant tax liabilities. Consulting with an attorney who has experience in both intellectual property law and estate planning can help minimize the tax burden that may be associated with these assets.
5. Regular updates: As with any component of an estate plan, regular reviews are necessary. This is particularly important for intellectual property due to changes in the law, the value of the IP, and your personal circumstances.

Contact Our Naperville Estate Planning Lawyer for Intellectual Property

As you address intellectual property in your estate plan, you may need to consider a variety of complex legal and financial issues. At the Gierach Law Firm, our DuPage County estate planning attorney can help you understand your legal options and the best steps you can take to protect your financial interests while providing for your loved ones’ needs. Reach out to us today at 630-228-9413 to set up a consultation and explore your options.