Article: The Estate Tax and De/Valuing Postmortem Publicity Rights

The postmortem right of publicity may be a lucrative but challenging asset to manage, and accordingly, developing strategies during life is now an important part of tax and estate planning for celebrities. A deceased celebrity’s estate is subject to estate tax on any property in which they have an interest at time of death. When state law provides testamentary control of the right of publicity, the right must be valued and included in the deceased celebrity’s gross estate for purposes of the estate tax return (Form 706). Do these valuation rules force commercialization of the postmortem right of publicity even when it may go against the wishes of the deceased? Will the legacy of a deceased celebrity potentially be tainted because of forced commercialization?