Transferring assets into a trust is a common estate planning strategy. However, when it comes to more complex assets such as collective membership trademarks, the process can get a bit complicated. Collective membership trademarks are marks used by members of a collective entity to indicate their membership in that collective. Transferring these into a trust can be beneficial for managing these assets and planning for the future. This blog will guide you through the process.
Understanding Trusts and Collective Membership Trademarks
A trust is a legal arrangement where assets are held by a trustee for the benefit of other parties, known as beneficiaries. Collective membership trademarks, unlike regular trademarks, do not indicate commercial origin. Instead, they indicate membership in a collective group like an association, union, or other membership organization.
Reasons to Transfer Collective Membership Trademarks into a Trust
Transferring collective membership trademarks into a trust helps to protect these assets, manage and control how they're used, and plan for their future. It can also simplify matters in the event of death, as the assets in the trust can avoid probate.
How to Set Up a Trust for Collective Membership Trademarks
- Choose the type of trust: Depending on your needs, you can choose between a revocable (can be changed or canceled) or an irrevocable trust (cannot be changed without trustee's consent).
- Select a trustee: This person or entity will manage the trust's assets, so you should choose someone you trust and who is capable of handling the responsibility.
- Create the trust document: This outlines the terms of the trust, including the beneficiaries and how the assets should be managed.
- Fund the trust: This involves transferring the assets, in this instance the collective membership trademarks, into the trust.
Process of Transferring Collective Membership Trademarks into a Trust
- Identify the trademarks: Make a comprehensive list of all the collective membership trademarks to be transferred into the trust.
- Assign the trademarks: An assignment is a transfer of ownership rights. You'll need to execute a written assignment agreement for each trademark that is transferred to the trust.
- Record the assignment: In many jurisdictions, it's advisable to record the trademark assignment with the relevant government body.
- Change records with the Trademark Office: The U.S. Patent and Trademark Office, or the relevant agency in your jurisdiction, should be updated to reflect the change in ownership.
Getting Professional Help
Given the intricacies involved in transferring collective membership trademarks into a trust, it's highly recommended to seek professional legal advice. A lawyer with experience in intellectual property and estate planning can guide you through the process and ensure you comply with all legal requirements.
Transferring collective membership trademarks into a trust is a strategic move that can protect these assets, provide for their future use, and simplify estate planning. However, due to the complex nature of these assets, professional help is recommended to ensure the process is executed correctly.