Can a Testamentary Trust Protect Your Intellectual Property in Kerrville?

When considering your estate plan, it’s easy to focus on tangible assets like real estate and savings accounts while overlooking intangible assets such as intellectual property (IP). For artists, inventors, or business owners, intellectual property can be one of the most valuable components of an estate. Including IP in your estate plan—particularly by using a testamentary trust—can ensure that it continues to provide value to your loved ones after you’re gone.

If you live in Kerrville or the surrounding area, McCammon Law is here to guide you through the process of safeguarding your IP with a comprehensive estate plan.

What Is a Testamentary Trust?

A testamentary trust is a trust established through your will and activated upon your death. This type of trust allows you to name a trustee to manage the assets in the trust, including intellectual property, on behalf of your beneficiaries. This structured approach ensures your IP is handled in a way that aligns with your wishes.

For Kerrville residents with valuable IP—such as copyrights, trademarks, patents, or trade secrets—a testamentary trust is an effective tool for protecting and distributing these assets.

Why Use a Testamentary Trust for Intellectual Property?

Intellectual property is often complex, requiring careful oversight and management. Here are a few ways a testamentary trust can help:

1. Professional Management

A trustee with knowledge of intellectual property law can handle registration renewals, licensing agreements, and other complexities. This is especially helpful if your beneficiaries lack experience in managing IP assets.

2. Financial Protection

If your IP generates revenue through royalties, licensing, or other means, a testamentary trust ensures that income is distributed to your heirs according to your instructions.

3. Avoiding Probate

Placing IP in a trust allows it to bypass the probate process, ensuring that these valuable assets are not delayed in distribution or exposed to public scrutiny.

Which Types of Intellectual Property Should You Include in a Testamentary Trust?

According to Charles Schwab, it's essential to identify the types of intellectual property you own. Some common forms of IP you might place in a testamentary trust include:

• Copyrights: For original works like books, music, or artwork, a testamentary trust ensures your creations continue to generate revenue and are managed correctly.
• Patents: Protect exclusive rights to inventions, ensuring their ongoing value for your beneficiaries.
• Trademarks: Secure brand names, logos, or symbols that are vital to your business’s success.
• Trade Secrets: Safeguard confidential business information, such as formulas or client lists, by placing it under the protection of a trust.

Choosing the Right Trustee

Appointing the right trustee is critical for managing intellectual property effectively. This individual or organization will oversee IP maintenance, enforce your rights, and distribute revenue according to the trust's terms. If your IP has the potential to generate income for decades, the trustee’s expertise can significantly impact its long-term value.

How Long Should the Trust Last?

The duration of a testamentary trust can be customized based on the nature of your IP. For example, copyrights last for 70 years after the creator’s death, so the trust may need to remain active for several decades. Work with a knowledgeable estate attorney to establish guidelines that align with your IP’s lifespan and your family’s needs.

Protect Your Legacy with McCammon Law

At McCammon Law, we understand the unique challenges of incorporating intellectual property into your estate plan. Based near Kerrville, we help families and business owners protect their most valuable assets with personalized legal strategies. Our goal is to provide peace of mind, knowing your IP will continue to benefit your loved ones for generations to come. Request a consultation with our office to learn more about how to confidently protect your IP.

Planning for the future is one of the most important steps you can take to protect your family, assets, and legacy. Whether you’re new to Kerrville or a lifelong resident, having a solid estate plan ensures that your wishes are honored and your loved ones are cared for. McCammon Law, based in nearby Boerne, provides compassionate and thorough estate planning services for individuals and families in Kerrville and surrounding areas.