An often overlooked element of estate planning is what to do with intellectual property assets, such as copyrights. A copyright is a "bundle" of legal rights owned by the author--each right is separate and divisible. For the most part, copyrighted works can be treated like any other assets. They can be owned jointly, transferred by gift or by death, or held in trust.
A copyrighted work is a
creation of authorship, fixed in a tangible medium of expression. It can
include works of art, audio recordings, musical compositions, images, videos,
computer programs, symbols, and written works. The medium can also be digital.
Even if you have assigned or licensed some of the rights to a copyrighted work, you may still retain other rights in the "bundle." Under current U.S. copyright law, the duration of copyright for a work created or fixed on or after January 1, 1978, extends for the life of the author plus 70 years after. Thus, after you die, your copyright interests will transfer to your heirs, and can be later transferred during those 70 years.
You can convey your
copyright interest to beneficiaries in your Will or trust, just as you can convey
other assets. If the works are digital, they can be accessed and managed by the fiduciaries of your Will and Power of Attorney under the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA).
Determining the value of copyrighted works can be difficult. In some cases, such as with a musical composition or work of art, it can be appraised by a professional. Having your works appraised may be required if you plan to report it on a gift tax or estate tax return.
Another important step to protect your copyright assets is to register them with the U.S. Copyright Office. Copyright automatically becomes effective for a work of authorship the moment the work is fixed in a tangible medium, and the formalities of registering are not required for that to occur. However, by registering the work, you (and your heirs) will have legal standing to enforce copyright protection in federal courts in the event of infringement. Current registration fees are $45 for a single author online application, so it's a small price for protection.
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A qualified estate planning attorney can help you craft a Will and Power of Attorney that protect your assets, tangible and intangible, for your beneficiaries.