[WSBAPT] valuation of book royalties

[Philip N. Jones]

This exact question comes up all the time. If you ask six different appraisers, you will get six different answers. Most appraisers would estimate the useful life of the copyright, and then use a capitalization rate to determine the current fair market value.  Estimating the useful life, and determining the capitalization rate, is both a science and an art. There is no one answer.
Phil Jones

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Sharon Rutberg <sharon at salmonbaylaw.com>
Sent: Monday, March 27, 2023 10:53:33 AM
To: wsbapt at lists.wsbarppt.com <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] valuation of book royalties


Greetings –



An asset in probate consists of intellectual property rights to a book the decedent wrote. The book is sold through Amazon and generates about $200 / month in royalties. There are not a lot of assets in the estate, which is insolvent, so I’d like to find a value for this asset, if possible. Does anyone know how it should be valued?



Many thanks,

Sharon



Sharon C. Rutberg, Attorney at Law

Salmon Bay Law Group, PLLC

1734 NW Market St.

Seattle, WA 98107

206-735-3177, ext. 2

sharon at salmonbaylaw.com<mailto:sharon at salmonbaylaw.com>

Website: www.salmonbaylaw.com<https://nam11.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.salmonbaylaw.com%2F&data=05%7C01%7Cpjones%40duffykekel.com%7Cce9c1ef5c8e145d0e72b08db2eec9ffe%7C2d66ed5354fa4c2f8c4dbff1aca5479d%7C0%7C0%7C638155366086045171%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=03URziZ4VzaB0OVPwRgmeVeqNdS8VDIvtc9%2BpseOtfs%3D&reserved=0>

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