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Thread: Designating loyalty payments to heirs upon death.?


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Permlink Replies: 7 - Pages: 1 - Last Post: Oct 22, 2017 10:46 AM Last Post By: Emily Veinglory
Alex Clark

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Registered: 05/18/16
Designating loyalty payments to heirs upon death.?
Posted: Oct 20, 2017 7:53 PM
 
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Has anyone here actually gone thru the process and what paperwork would be required for me to designate a family member to receive any and all payments, from Amazon, Create Space and Kindle, either upon my death or while I am still alive?
Donna St Felix

Posts: 5,452
Registered: 09/18/13
Re: Designating loyalty payments to heirs upon death.?
Posted: Oct 20, 2017 8:07 PM   in response to: Alex Clark in response to: Alex Clark
 
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Alex Clark wrote:
Has anyone here actually gone thru the process and what paperwork would be required for me to designate a family member to receive any and all payments, from Amazon, Create Space and Kindle, either upon my death or while I am still alive?

Per past posts, in a will you would need to list whom you want to inherit the rights to your works.
If alive and unable to handle your own finances, a person should be legally named to handle your affairs. Your income should go into your funds for your use.
Both of your questions require the work of a lawyer.
beachgardener

Posts: 372
Registered: 06/13/11
Re: Designating loyalty payments to heirs upon death.?
Posted: Oct 20, 2017 9:12 PM   in response to: Alex Clark in response to: Alex Clark
 
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Alex Clark wrote:
Has anyone here actually gone thru the process and what paperwork would be required for me to designate a family member to receive any and all payments, from Amazon, Create Space and Kindle, either upon my death or while I am still alive?

Do a trust that designates a survivor trustee (good for all your assets and needs). Change the name on the account that receives your book related income to the trust name - ie: Joe Blow as Trustee for the Joe Blow Trust DTD 10/20/2017 The bank will help you do this. If you are ill or deceased the survivor trustee will have no problem dealing with taking care of your funds and should be the one designated by your will to see that whomever you have selected to inherit your literary rights is aided in transferring when the time comes. Makes for a smoother transition as the trust acts as your notarized directions. Not complicated - a trust is a good idea for anyone with assets they wished transferred with the least difficulty. Will keep your assets out of probate if you tittle all of them as shown. Yes your estate will still need to pay any and all appropriate taxes but not spend months getting through probate court and incur lawyer fees.
See a lawyer or use an acceptable on line form. Worth doing.
B
And, yes, I put four children through college doing Financial Planning and Investing at a major firm so this is reasonable advice.
Notjohn

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Registered: 02/27/13
Re: Designating loyalty payments to heirs upon death.?
Posted: Oct 21, 2017 2:13 AM   in response to: Alex Clark in response to: Alex Clark
 
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The royalties (and the copyrights) go to the same folks who get the family silver. Just have a simple will and a trustworthy executor.

You might tell your heirs that inherited copyrights are passive income. Royalties don't get reported on Schedule C (self-employment) but on Schedule E (rents & royalties) for purposes of the US tax. Other countries' laws will differ.

(Don't trust KDP to publish a print edition. Don't trust CreateSpace to publish an ebook.)

Good luck! -- NJ

Notjohn's Guide to E-Book & Print Formatting

The blog:
http://notjohnkdp.blogspot.com
P.M. Laidlow

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Registered: 05/21/17
Re: Designating loyalty payments to heirs upon death.?
Posted: Oct 21, 2017 9:46 AM   in response to: Notjohn in response to: Notjohn
 
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Notjohn wrote:
Royalties don't get reported on Schedule C (self-employment) but on Schedule E (rents & royalties) for purposes of the US tax.

This is completely wrong information.
Emily Veinglory

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Registered: 04/25/13
Re: Designating loyalty payments to heirs upon death.?
Posted: Oct 21, 2017 12:04 PM   in response to: P.M. Laidlow in response to: P.M. Laidlow
 
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Just to reinforce, that is defintiely the wrong advice. Schedule E is for royalty from assets, like shares in a coal mine. Royalties from your own works are declared under C. I made this very mistake until I hired a competent tax accountant who put it right.
Angela

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Registered: 10/07/12
Re: Designating loyalty payments to heirs upon death.?
Posted: Oct 22, 2017 8:49 AM   in response to: Emily Veinglory in response to: Emily Veinglory
 
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He is talking about inherited royalties. That's a different ballgame altogether. The person who inherited it didn't generate it, so it's passive. Plus, some royalties are passive incomes anyway, like rental properties. A lawyer needs to handle it to make sure they're handing correctly per their country/state.
Emily Veinglory

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Registered: 04/25/13
Re: Designating loyalty payments to heirs upon death.?
Posted: Oct 22, 2017 10:46 AM   in response to: Angela in response to: Angela
 
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Generally the inherited royalties are only a minor issue, because what is inherited is the copyright and future royalties become directly earned. I would depend on the executor to deal with monies in the estate after the termination of the Amazon account but they would probably be in a lump sum as part of the total inheritance.
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