Transferring assets into a trust is a common practice for asset protection and estate planning, and this includes intangible assets like word mark trademarks. A word mark is a type of trademark that provides protection to the name of a product or a service rather than its logo or symbol. This blog post will guide you through the process of transferring a word mark trademark into a trust.
Understanding Trusts and Trademarks
A trust, as we know, is a legal entity that holds assets for the benefit of certain people or entities. It provides legal protection, tax benefits, and can help avoid probate. On the other hand, a word mark trademark is a unique text-based mark that distinguishes your goods or services from others in the marketplace. It forms a crucial part of your brand identity.
Why Transfer a Trademark into a Trust?
Transferring a trademark into a trust offers several benefits. Firstly, it removes the asset from your personal estate, offering liability protection. Secondly, depending on the type of trust, it might provide tax benefits. Thirdly, it ensures that the trademark is managed and protected according to your wishes even after your demise, thereby ensuring business continuity.
Setting Up a Trust for a Trademark
- Choose the type of trust: Depending on your needs, you can pick between a revocable trust (which can be altered or cancelled) and an irrevocable trust (which cannot be changed without the trustee's permission).
- Select a trustee: The trustee should be someone who will manage the trust assets effectively.
- Create the trust document: The document should outline the terms of the trust, including the beneficiaries and the management of the assets.
- Fund the trust: Move your assets, in this case, the word mark trademark, into the trust.
Process of Transferring a Word Mark Trademark into a Trust
- Appraise the trademark: Understand the value of your word mark trademark in the current market.
- Assign the trademark: The trademark needs to be legally assigned to the trust. This is usually done through an 'Assignment Agreement' which transfers the ownership of the mark from you to the trust.
- Record the assignment with the USPTO: It’s essential to record the assignment with the United States Patent and Trademark Office to make it legally binding.
- Change insurance policy: If the trademark is insured, the insurance policy should be updated to reflect the name of the trust.
- Document the transfer: Always keep a record of the transfer for future reference.
Seeking Professional Help
Given the legal complexities involved in transferring a word mark trademark into a trust, it’s advisable to seek the help of a lawyer or a financial advisor. They can guide you through the process, help you manage the trust, and address any legal or financial issues that may arise.
Conclusion
Transferring a word mark trademark into a trust can seem complicated, but with careful planning and professional help, it can be made straightforward. It is a worthwhile step to ensure the continuity and protection of your brand identity.
