Wednesday, July 14, 2021

Bequeathing Royalties in a Will or Trust

Dietmar RabichBorkum, Alter Leuchtturm,
Dear Rich: I'm in the middle of planning my estate and I'm doing my own will. How do I include royalties from a very successful toy I invented. Assuming it’s still generating income when I die, I’d like the royalties to go to a charity. 
You should have no problem bequeathing your royalties, as well as any other rights you have to the toy design in your estate plan. Start by contacting the charity to learn if they have a process to initiate bequests. Many charities have special departments geared to assisting with grants and gifts. (For example, here's how the Audubon Society does it.).
Specific bequest. If the charity doesn't have a program for bequests, you can make the gift as part of your will. List the royalties as a specific bequest being careful to name the subject of the bequest, the recipient, and the source of the royalties (the contract and licensee company). For example:
“I bequeath all income derived from my toy, Waddle Wheels, to the charity, Corvid Recovery Group. Waddle Wheels income includes but is not limited to royalties paid under the MakeGo Licensing Agreement.”
It may also be helpful to list the address of the charity and its tax I.D. Upon your passing, your executor would notify the licensor, (in this case, MakeGo), of your bequest and request that MakeGo pay periodic royalties to the charity. In the same manner, you could make a bequest assigning any patents on which you are named. (Your executor would register the assignment with the USPTO.) 
Trusts. If you're creating a trust, you can assign your royalties (and patent rights, if any) to the trust.  

No comments:

Post a Comment