Athletes and entertainers often face unique challenges when it comes to estate planning. These challenges are often the result of their high-profile careers, fluctuating incomes and valuable assets.
Athletes and entertainers can establish a comprehensive plan that addresses their needs and priorities by taking important estate planning steps.
1. Secure proper insurance coverage
Athletes and entertainers should ensure they have adequate insurance coverage to protect their income, assets and future earnings potential. Disability insurance can provide financial security in the event of career-ending injuries or illnesses. Life insurance can provide for loved ones in the event of premature death. Liability insurance, meanwhile, can protect against potential legal claims or lawsuits related to professional activities.
2. Create a will or trust
Creating a will or trust enables athletes and entertainers to outline where they want their assets to go upon their passing. A will allows people to specify who will inherit their property and belongings, including financial assets, real estate and personal possessions. Trusts offer additional benefits, such as asset protection, privacy and control over the distribution of assets. This makes them a valuable estate planning tool for high-net-worth individuals.
3. Plan for digital assets
In today’s digital age, athletes and entertainers often have valuable digital assets. These might include social media accounts, digital media rights and online revenue streams. It is important to include provisions for these digital assets in an estate plan to ensure they undergo proper management. This may involve appointing a digital executor, providing access instructions and specifying where these assets should go upon their passing.
Estate planning helps athletes and entertainers protect their wealth, ensure their legacy and provide for their loved ones. Taking proactive steps to plan for the future can provide peace of mind and financial security for athletes and entertainers and their families.