When most people plan to transfer their estate, they tend to only focus on tangible assets. Property such as land, cash, investments, and homes are often the most common to be included in estates planning. However, intellectual property is also becoming an important asset for many people.

Copyrights for artistes and patents for businesses now hold much more value than before. In fact, these assets may even hold more value than your tangible assets. It's important to plan for the successful transfer of any intellectual property you may have. These intangible assets can continue to benefit your beneficiaries for many years after your death.

Understanding copyright

Copyright falls under the broader category of intellectual property. Intellectual property is a general term that refers to many different intangible assets. From copyrighted works (such as books and audio recordings) to trade secrets and patented products, intellectual property needs to be carefully handled so that you don't lose out on your creations.

Copyrights are a type of intellectual property that protect your works of authorship. They protect your expression of ideas rather than the idea itself. For example, a book, a song, a software program or webpage content may be part of your copyright. As the author/creator of the work, copyright laws protect others from taking your work and using it as their own. 

How can you plan for the successful transfer of copyrighted work?

Transferring intellectual property tends to be more complicated than tangible assets. First, the property needs to be clearly registered with a relevant governing body. The Australian Copyright Council is responsible for handling and processing copyright applications.

If you're a recording artist, author or other creator of an original piece of work, you should begin by having all your projects copyrighted. This will make it easier for you to prove ownership of the work during estates planning. With a clear copyright, you can also show the value of the assets as part of your estate. And if anyone infringes upon copyright law by using your works without permission, you can pursue legal recourse to receive adequate compensation.

The second important step is to develop a succession plan for your copyrighted works. If you have a specific person you would wish to inherit your intellectual property, the best approach is to write a will. Clearly distinguish between tangible and intellectual property when writing your will and mention the specific copyrighted works you wish to transfer. 

Use of a living trust may also be beneficial for transferring copyrighted works. A living trust avoids the lengthy probate process and allows you more flexibility when deciding how your intellectual property will be handled. For more information, contact your local wills and estate lawyer.