When planning your estate, it is natural to focus on physical possessions, property, and finances. However, many people overlook one of the most valuable parts of their estate—intellectual property in your will. For creative individuals, their life’s work can be just as important as their home or savings, and failing to plan for it can lead to confusion, disputes, and lost income for loved ones.
Creative work allows a person to live on through their ideas—whether expressed through art, writing, music, inventions, photography, or designs. But without clear instructions in your will, the rights to these creations may pass to people you never intended, or become difficult for your heirs to manage.
Understanding what intellectual property is—and how it is handled after you pass away—is an essential part of estate planning.
What Is Intellectual Property?
Intellectual property refers to the legal rights you hold over the creative or original works you produce. It is often described as “intangible property” because it isn’t a physical object you can hold, but it still has clear value and ownership.
Types of intellectual property include:
Copyrights
Patents
Trademarks
Registered and unregistered designs
Artist Resale Rights
Library lending rights
These rights give you control over how your creations are used, reproduced, distributed, or monetised. Importantly, intellectual property is separate from the physical form of your work. For example, selling an original painting does not automatically transfer the copyright unless you specifically assign those rights.
What Happens to My Intellectual Property After I Die?
Your intellectual property forms part of your estate. This means:
If you specifically mention it in your will, it will pass according to your instructions.
If your will does not mention it, the intellectual property goes to your residuary beneficiary—the person who receives the remainder of your estate.
If you have no valid will, the rights pass according to intestacy laws, which may not reflect your true wishes.
This is why intellectual property in your will must be addressed clearly. Without instructions, your creative work could end up controlled by someone who does not understand it, value it, or manage it effectively.
If your work generates royalties, book sales, licensing income, or streaming revenue, failing to plan can also lead to financial loss for your family.
Intellectual Property and Inheritance Tax
Yes—intellectual property is considered for inheritance tax. This means the value of your rights (including royalties and saleable rights) contributes to the total value of your estate.
Valuing intellectual property is often complex because it must be assessed at market value at the time of death. If your creative work is extensive or commercially valuable, you may need a specialist accountant to estimate its worth.
Certain tax reliefs may apply, such as Business Property Relief, if the intellectual property is owned within a qualifying business.
Planning for Your Creative Legacy
To ensure your intellectual property passes to the right people:
1. Understand the value of your work
Estimate earnings from royalties, licensing, or publishing. For complex portfolios, professional valuation may be essential.
2. Decide who should inherit your creative rights
Consider who understands your work, who will preserve your legacy, or who would benefit most financially.
3. Keep detailed records
Document your creations, where they are stored, and contact details for publishers, agents, or licensing companies.
4. Update or create your will
A qualified estate planning professional can ensure your instructions are legally sound and correctly drafted.
Planning ahead ensures your creative life continues to benefit those you care about—and protects the legacy you’ve spent a lifetime building.
