| Nowadays many people have their wealth | | | | person's death. Different intellectual |
| in both tangible and intangible assets. | | | | properties like copyrights, patents etc |
| These intangible assets are also known | | | | use different methods to decide the |
| as intellectual property. It includes | | | | market value of the property. On the |
| patents, copyrights, trademarks and even | | | | basis of these findings, the value of |
| trade secrets. Many a times the value | | | | the intellectual property is added to |
| people are in possession of thus is much | | | | the gross estate. The valuation analysis |
| higher than the physical assets. | | | | is subjective and so the ideal method to |
| The commercialization and widespread use | | | | choose is the one that will give you the |
| of the Internet provides everyone the | | | | lowest value. Although this may not be |
| chance to create intellectual property. | | | | the best method when valuation is done |
| This is no longer restricted to the | | | | for other purposes, but it is highly |
| large Multi National Corporations or the | | | | recommended when the main objective is |
| affluent few. Everyone has the right and | | | | to calculate your tax liability. |
| the capability to develop such property | | | | Many a times the value of the |
| with the help of copyrights, trademarks | | | | intellectual property will be higher |
| or inventions that can be patented. | | | | than the value of the liquid cash or |
| Although the intellectual property grows | | | | assets that are available in hand. This |
| as a wealth-creating tool, it is added | | | | means that you will not have sufficient |
| to your estate taxes. You will also be | | | | cash to pay the taxes. If and when you |
| faced with the task of determining the | | | | are in such a situation, then you will |
| value of this property so that it can be | | | | be required to sell some part of your |
| added to your estate to calculate the | | | | estate to meet the expenses. You also |
| taxes. | | | | have the alternative to utilize the tax |
| A person's intellectual property, | | | | payment deferment that the Internal |
| especially copyrights, make a lot of | | | | Revenue Code(IRS) allows the taxpayers. |
| difference while estimating the estate | | | | Code 6161 of the IRS allows a deferment |
| taxes. It is necessary to know the value | | | | of estate taxes for up to ten years as |
| of all the assets including the | | | | long as a reasonable cause is provided |
| intellectual property to be able to find | | | | by you. |
| out the value of the estate. When | | | | One of the causes that the IRS considers |
| calculating the value of the gross | | | | reasonable is proof showing that the |
| estate, it will also include retirement | | | | taxes cannot be paid due to the illiquid |
| accounts, joint property etc. As of now, | | | | intellectual assets that encompass your |
| the maximum limit up to which the estate | | | | estate. You are given time to consider |
| tax is exempt is $2 million. In 2009, | | | | the other options available to you to |
| this limit is said to be increased to a | | | | make the payments and ensure that you do |
| sum of $3.5 million. | | | | not take some hasty decision like |
| The valuation of the intellectual | | | | selling property. Nevertheless, you will |
| property is based on the fair market | | | | be entitled to pay interest on the |
| value of the property on the day of the | | | | differed payment. |