Most people think of estate planning as a way to pass down houses, cash, and retirement accounts to their loved ones. But what about intellectual property—the ideas, inventions, or creative works you’ve built?
For many Texans, intellectual property (IP) can be one of their most valuable assets, yet it’s often overlooked in estate planning. Whether you’re an author, business owner, inventor, or just someone with creative ideas, making a plan for these assets can help protect your legacy and provide income for your family for years to come.
What Is Intellectual Property?
Intellectual property (IP) refers to creations of the mind that have financial value. If you own IP, you may have rights that allow you (or your heirs) to profit from it even after you’re gone.
There are four main types of IP, and each one needs special attention in your estate plan:
1. Patents: Protecting Your Inventions
Patents give inventors the exclusive right to make and sell their creations for a set period (usually 20 years). If you’ve patented something, your estate plan should address:
✔️ Who will own and manage the patent after your passing?
✔️ Will your family keep or sell the rights?
✔️ Are there licensing agreements in place that will continue paying your heirs?
Example:
Imagine you invent a new type of fishing reel that becomes popular. If you hold a patent, that product could generate income for years. Without an estate plan, your family might lose control of the patent or struggle to monetize it properly.
2. Copyrights: Protecting Books, Music, and Art
A copyright protects creative works like books, songs, films, and artwork. The best part? Copyrights last for decades—even after the creator’s death! That means they can provide ongoing income for your loved ones.
✔️ Who will inherit the rights to your work?
✔️ Should royalties be split among family members?
✔️ How should the work be managed in the future?
Example:
An author in Texas writes a book series that sells well for years. If they pass away without a plan, their family might lose out on future royalties or argue over who controls the books. A clear estate plan solves these issues.
3. Trademarks: Protecting Your Brand
A trademark is a name, logo, or symbol that represents a business—like the Nike swoosh or the Whataburger logo. Trademarks can increase in value over time, so protecting them in your estate plan is crucial.
✔️ Who will own and manage the trademark?
✔️ Will your heirs continue the business or sell the brand?
✔️ Are there renewal deadlines that need attention?
Example:
A Texas BBQ pitmaster builds a famous name and logo for his catering company. If he doesn’t plan ahead, his family could lose the trademark rights, and someone else might take over the brand.
4. Trade Secrets: Keeping Business Knowledge in the Family
A trade secret is a private formula, process, or strategy that gives a business an edge—think of the secret recipe for Texas chili or a family BBQ sauce. Keeping these secrets protected in an estate plan ensures they stay in the right hands.
✔️ Who will inherit the secret information?
✔️ Are there confidentiality agreements in place?
✔️ Should the secret be kept or sold?
Example:
A Texas baker has a one-of-a-kind kolache recipe that makes her bakery a local favorite. Without an estate plan, the recipe could be lost, or worse—someone else might take credit for it!
Protecting Your Intellectual Property in Texas
Estate planning isn’t just about who gets what—it’s about securing your legacy and making sure your loved ones benefit from what you’ve built. In Texas, your estate plan should include:
✔️ A will or trust that clearly outlines who inherits your IP.
✔️ An executor or trustee with experience in handling IP assets.
✔️ Licensing agreements to ensure your heirs continue to receive income.
✔️ Legal protections to keep your trademarks, copyrights, or trade secrets safe.
Final Thoughts
If you’ve created something valuable—a book, a brand, a business, or an invention—it’s worth taking the time to include it in your estate plan. Without a plan, your family might lose control of your work, miss out on future income, or get caught in legal disputes.
By working with a Texas estate planning attorney, you can make sure your intellectual property is protected, profitable, and passed down the right way.
About the Author. Marcio Soares is an experienced Estate Planning Attorney and Army Veteran. He served his country with distinction and now brings that same dedication to serving the estate planning needs of Texas residents. To learn more about Marcio and the Soares Law Firm, PLLC, go to https://soareslawfirm.com.
