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Intellectual Property

Also known as: IP, Copyright, Trademarks, Patents

Definition

Intellectual property is the legal ownership of creations like copyrights, patents, trademarks, and designs that you can include in your will and pass on to beneficiaries.

Unlike physical property such as houses or cars, intellectual property is intangible—it represents your legal rights to control how your creations are used and who benefits from them financially.

What Does Intellectual Property Mean?

Under UK law, intellectual property encompasses four main types of legally protected creations. Copyright protects literary, artistic, musical, and dramatic works automatically when you create them. Patents protect inventions through a registration process. Trademarks protect brand names, logos, and identifiers through registration. Design rights protect the appearance of products. Each type has different protection duration—under the Copyright, Designs and Patents Act 1988, copyright lasts for 70 years from the end of the calendar year in which you die.

Intellectual property passes through your will like other assets. You can leave copyright to one beneficiary and physical manuscripts to another—they're legally separate. Without a will, your IP passes under intestacy rules to your next of kin. If you don't specifically mention IP in your will, it passes to your residuary beneficiary along with the rest of your estate. For creators with ongoing royalty income, this distinction matters enormously. Sarah, a professional photographer, built an image library generating £8,000 annually from stock agencies. She died without a will, so her copyright passed to her parents under intestacy rules rather than her partner who understood the business and could maximize licensing opportunities.

IP must be valued at market value for inheritance tax purposes under the Inheritance Tax Act 1984. Valuation can be complex—a patent portfolio might be worth £280,000 based on licensing agreements, while unpublished manuscripts could be worth very little or potentially hundreds of thousands depending on commercial potential. Business Property Relief may reduce or eliminate inheritance tax if IP is owned through a qualifying trading business. David runs a manufacturing company holding three patents valued at £280,000. Because the patents are owned through his trading company for over two years, they qualify for 100% Business Property Relief, saving £112,000 in inheritance tax compared to personal ownership.

For authors, artists, and creators, appointing a literary executor or specialized professional who understands publishing contracts and licensing can protect your creative legacy. Margaret, a published author, leaves her physical manuscripts to the local library but bequeaths all copyrights and future royalty income to her daughter. The copyright will generate approximately £15,000 annually for 70 years after Margaret's death—potentially over £1 million in total value when accounting for inflation and ongoing book sales.

Common Questions

"What types of intellectual property can I include in my will?" You can include all forms of intellectual property in your will, including copyrights (books, music, art), patents (inventions), trademarks (brand names, logos), design rights, and royalty agreements. Each type can be left to different beneficiaries or kept together as part of your estate.

"What happens to my copyright after I die?" Copyright doesn't expire when you die—it lasts for 70 years after your death under UK law. Your copyright passes to whoever inherits it through your will (or under intestacy rules if you have no will), and they can continue to receive royalties and control how your creative works are used.

"Do I need to value my intellectual property for inheritance tax?" Yes, intellectual property must be valued at market value for inheritance tax purposes under the Inheritance Tax Act 1984. This can be complex—you may need professional valuation for patents, ongoing royalties, or valuable creative works. Business Property Relief may apply if the IP is owned through a business.

Common Misconceptions

Myth: Copyright expires when I die, so my creative works become public domain.

Reality: Copyright lasts for 70 years after your death under UK law (Copyright, Designs and Patents Act 1988, Section 12(2)). Your beneficiaries inherit the copyright and can continue to receive royalties, license your works, and control their use for seven decades after you're gone.

Myth: Only famous authors and inventors need to worry about intellectual property in their will.

Reality: Anyone who creates content, builds a brand, or develops ideas should consider IP in their will. A small blog with advertising income, a trademark for a local business, a patent application in progress, or unpublished manuscripts all have value and should be specifically addressed to ensure they go to intended beneficiaries.

  • Business Assets: Intellectual property is often a business's most valuable asset, particularly for creative agencies, software companies, and manufacturing businesses with patents or proprietary systems.
  • Digital Assets: Some intellectual property exists in digital form—e-books, digital music, software code, online courses, and digital photographs sit at the intersection of both categories.
  • Royalties: Intellectual property ownership often comes with royalty rights—ongoing payments from books, music, patents, or licensing agreements that continue after your death.
  • Online Business: E-commerce businesses often have significant IP value in domain names, trademarks, content libraries, and proprietary software that must be addressed in succession planning.

Need Help with Your Will?

If you own creative works, patents, trademarks, or any form of intellectual property, proper will planning ensures your valuable creations pass to the right beneficiaries and receive available tax reliefs. IP can generate income for decades after your death—specific provision in your will protects both the financial value and your creative legacy.

Create your will with confidence using WUHLD's guided platform. For just £99.99, you'll get your complete, legally binding will plus three expert guides. Preview your will free before paying anything—no credit card required.

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.