Domain Name Tips and Tricks

Making a will is not something many people want to think about but it is something worth considering if you want to determine who will get your assets when you pass away. What if no one knows about your domain names and they start expiring? Isn’t it time to arrange transfer of your domaining assets to a beneficiary in the event of your death?

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Domaining is a business based on the premise that domain names have monetary value and/or income. Like any other asset, it is important to make arrangements as to who should inherit these assets. Assets associated with domaining may include domain names, websites, software and hardware. You may also have licenses and subscriptions which you should examine.

It is important that you document your purchases, sales and other income e.g. parking income as the general course of business but also so ownership can be clearly documented. Obviously the documentation needs to be up to date to ensure accuracy. You may have changed registrars since you bought or registered the domain and so documentation reflecting information about the current registrar is important.

Also make sure the Whois information associated with each of your domain names is accurate. “At least annually, a registrar must present to the registrant the current Whois information, and remind the registrant that provision of false Whois information can be grounds for cancellation of their domain name registration. Registrants must review their Whois data, and make any corrections.” (ICANN instructions)

Giving someone else, executor or beneficiary, access to the email account you have in your Whois may not be a bad idea since all correspondence will come through that email address including expiration’s.

Depending on the domain names you own and in which country you live, inheritance procedure may vary. It is hard to find clear written policies from registrars or governing bodies on this subject.

Here is a rare example taken from the terms and conditions for .uk domain names through Nominet

“18     If you are an individual, this contract will end if you die and the person legally appointed to deal with your assets after you die does not transfer the domain name (either to themselves or someone else) within a year of your death (or the end of their appointment, whichever comes first).”

It also appears that a beneficiary who receives the domain names through an inheritance also inherits the legal liability. A WIPO claim shows one such example: Tail of the Dragon, LLC v. Ronald Buck. In this case the wife of the domain owner inherits the domain name and then because of the alleged harassment by the complainant’s legal team, she moves ownership to her son. The eventual outcome was in the defendant’s favor but what is noted is that the beneficiary’s conduct may have bearing on a pending case. Lesson to be learned there.

I was not able to find a clear description of how domain names would be treated for inheritance tax. It appears they may be treated differently depending on whether they are a trademark or not (your own trademark, not someone else’s). It would be interesting to find out more because it might be worth filing a trademark in particular cases to avoid inheritance tax but it would need a good tax attorney to help figure that out.

Imagine you were not there tomorrow to run your business. What would happen? Is there someone who could step in for you in the interim? Are you completely essential for your business to run smoothly day to day?

Having a plan that includes:

“Your homework is to teach the person who has your power of attorney or your independent executor what your important information is and where you store it,” said Cameron Vann, an attorney in Washington, Texas, who specializes in probate and family law.

Vann suggests creating a list of important contact information, including who your attorney is, who your accountant is, where your bank accounts are located, and so on. This list could also contain your passwords.

You can find out more from this State Bar of Texas article Memorializing Your Computer Passwords

As always, I am not a lawyer and you should consult one before you make any decisions about your will and inheritance.

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