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