The Valuation Process of a Celebrity’s Image

With so many recent celebrity deaths, there is an ongoing contention over the worth of intangibles, specifically publicity rights. The IRS intends to collect as much as possible from these estates, which forces heated tax claims over intangible evaluations. These evaluations are hard to get right because how can you put a price on a celebrity’s image?

There is no specific valuation process to follow but more of a “totality of the circumstances” approach is used. Some factors to consider in this process are the value of the net economic benefit, risk associated with future income, and historical income generation. Quantification problems in celebrity’s valuations, however, could mean the difference between millions of dollars 

See Ettinger Law Firm, What’s in a Name? Publicity Rights of Deceased Celebrities, New York Estate Planning Lawyer Blog, June 13, 2016.