Protecting Your Wealth One Piece At A Time

Unique wealth preservation challenges for entertainers

On Behalf of | Jun 15, 2022 | Estate Planning |

Las Vegas looks on with a mix of awe, reverence and perhaps a bit of envy at the talent, audacity and brilliance of those entertainers who have reached that precipice of fame and fortune that so few can attain. In the world of sports and entertainment, many of the rich and famous will come out ahead if they think about asset protection strategies now that will serve their future needs.

Unfortunately, entertainers pay a high price for success for several reasons:

  • Highly competitive entry into the field, equally high competition to remain relevant.
  • Short period of time to realize their human capital.
  • Competitive lifestyle leading to short-term financial planning.

Financial services experts define human capital as the characteristics that allow individuals to produce economic value through their labor. Unlike for the 30- or 40- year careers of people who work in fields such as finance, science, or business, human capital can be short-lived for athletes who earn a lifetime of income in a few short years, or the fleeting success of an actor or musician who achieves wealth and fame with one hit.

Unique strategies to preserve wealth

A unique approach to financial planning for entertainers creates three categories for financial management, with a timeline for each financial strategy:

  • Short-term expenditures: financial planning for the next three years covers day-to-day expenses, emergencies, taxes and large expenses.
  • Lifetime and retirement: financial and estate planning of four years to lifetime planning for post-professional career, retirement, healthcare and long-term care needs.
  • Legacy planning: estate planning for family and philanthropy.

Because entertainers experience their human capital in spurts or early on in their careers, future planning reduces the anxiety they may feel at potentially losing that spotlight and income stream in the future.

Unique IP considerations for entertainers

Entertainers often profit from their name, brand, or image as a means of retaining relevance and future income. As protecting their IP is an essential part of estate and asset protection, it is critically important to have specialized estate planning services to assist with the complexities of:

  • Copyright protection that continues into estate administration.
  • Trademark protection that prevents copycat startups or theft.
  • Right of publicity protection prevents unauthorized use of a name, likeness, or image.

The unique approach to asset protection for entertainers recognizes that every talent is an asset worthy of protection and preservation.