Intangible Property
What Is Intangible Property?
Intangible property refers to assets that have value but do not exist in a physical form. These assets represent legal rights or financial interests rather than physical objects.
Common examples include stocks, bonds, intellectual property rights, digital assets, and ownership interests in businesses.
Why It Matters
Intangible property can represent a significant portion of a person’s wealth. Proper documentation and estate planning help ensure these assets are transferred smoothly to beneficiaries.
Because intangible assets may be held through financial institutions or digital platforms, clear instructions are often needed to locate and manage them.
How Intangible Property Works
Ownership of intangible property is established through legal or financial records rather than physical possession.
Examples include:
- stock certificates or brokerage accounts
- patents or copyrights
- digital accounts and cryptocurrencies
- business ownership shares
These assets may transfer through beneficiary designations, trusts, or wills depending on how they are structured.
Example
An investor owns shares of a publicly traded company through a brokerage account. These shares represent intangible property.
Intangible Property vs Tangible Personal Property
- Intangible property represents ownership rights without a physical form.
- Tangible personal property consists of physical items that can be touched or moved.
FAQs About Intangible Property
Are stocks considered intangible property?
Yes. Stocks represent ownership interests and have no physical form.
Can intangible assets be inherited?
Yes. They may transfer through estate planning documents or beneficiary designations.
Do digital assets count as intangible property?
Yes. Digital accounts and cryptocurrencies are common examples.
Related Terms
