17 Jun How to Use Your Estate Plan to Protect Your Intellectual Property

When most people think of the assets that make up an estate, they imagine homes, bank accounts, or family heirlooms. But for Arizona entrepreneurs, creatives, and business owners, their intellectual property (IP) holdings may be the most valuable assets they own. 

Whether it’s a copyrighted book, a patent, a software license, or a trademarked brand, these assets need to be included in your estate plan to preserve their value and secure your legacy. Here’s how to use estate planning to protect your intellectual property if you live in Arizona.

How to Secure Your Intellectual Property in Arizona

Step 1: Take a Careful Inventory

Start by creating a clear list of all of your intellectual property assets. These may include:

• Copyrights – books, music, software, photography, etc.
• Trademarks – logos, slogans, brand names. 
• Patents – inventions, designs, processes.
• Trade secrets – proprietary business methods, client databases, or product formulas.
• Licensing agreements – right to use or distribute intellectual property, either owned by you or licensed to you.

It’s important to document the nature of each asset, its legal status (registered, pending, or common law), and where it’s stored or registered. This will help your successor trustee or the executor of your will ensure that the assets are distributed smoothly and correctly. 

Step 2: Estimate the Value of Your IP Assets

Many people underestimate the financial and strategic value of their intellectual property. IP can generate ongoing royalties, license fees, or even serve as collateral for business financing. 

In Arizona, community property laws may apply if these assets were acquired during marriage. A formal valuation of your IP can help you determine how to distribute or protect these assets properly. 

Step 3: Include Your IP in Your Will or Trust

A will allows you to specify who will inherit your intellectual property when you’re gone. However, wills have to go through probate, which is a long, expensive, and public process. A will may not be the best option for managing particularly valuable or sensitive IP. 

A revocable living trust, on the other hand, keeps the ownership transition private and efficient. You can transfer ownership of your IP into the trust during your lifetime and name a successor trustee to manage it after your death. 

For example, a songwriter might assign copyright ownership of their music to a trust and specify that their heirs will continue to receive royalty payments. And a small business owner might place trademarks and patents into a trust for the successor, to ensure the business can continue to operate seamlessly.

Step 4: Appoint a Knowledgeable Trustee or Executor

Managing intellectual property rights requires a certain level of expertise. You’ll want to appoint a successor trustee or executor of your will who understands how to maintain, renew, license, or sell IP assets as needed. 

If your assets include trademarks or patents, they will need to handle things like:

• Renewing registrations with the U.S. Patent and Trademark Office
• Monitoring infringement
• Negotiating licensing or royalty agreements

Step 5: Plan for Ongoing Revenue and Licensing

If your intellectual property generates income, your estate plan needs to address how that revenue should be managed. 

Here are some questions to consider:

• Should your heirs receive direct payments from royalties?
• Should the trustee license the IP to generate income for your beneficiaries?
• Do you want the business or IP to be sold?

Clear instructions can help prevent future conflicts and ensure that your IP continues to benefit your loved ones long after you’re gone. 

Step 6: Protect Against Disputes and Infringement

Your estate plan should also outline what to do if someone infringes on your intellectual property after your death. Your trust or will should include language authorizing your executor or trustee to take legal action to protect your intellectual property if necessary. 

Step 7: Keep Your Estate Plan Up to Date

Like all aspects of estate planning, protecting your IP assets means reviewing your plan on a regular basis. New legal regulations, trademarks, copyrights, or business partnerships may affect your strategy. For example, if you move intellectual property into a business entity or license it differently, you’ll need to make sure your estate plan reflects those changes. 

Need Help Protecting Your IP in Arizona?

Your intellectual property can continue to bring value to your family long after you pass away. In Arizona, protecting that legacy requires thoughtful estate planning tailored to your specific assets and goals. Whether you’re a writer in Scottsdale, an inventor in Tucson, or a business owner in Phoenix, you need to make sure your IP doesn’t get lost in the shuffle.

At Phelps LaClair, we can help you integrate your intellectual property into your estate plan, where it is protected and secure. Contact us today to schedule a free consultation and make sure your creative legacy lasts for generations to come.

Images used under creative commons license – commercial use (6/17/2025). Photo by RDNE Stock project on Pexels