Estate Planning Tips for Young Athletes
Learn how young athletes can safeguard their assets with smart estate planning, including wills, trusts, and healthcare directives.
Estate planning might seem premature for young athletes, especially those just beginning their careers, but in reality, it’s an essential aspect of long-term financial security. With NIL deals, endorsement contracts, and professional opportunities bringing in substantial income at early ages, safeguarding wealth through smart estate planning is crucial.
Ron McCoy provides expert guidance for young athletes to develop strong estate plans that protect their assets, support loved ones, and ensure peace of mind.
Why Estate Planning Matters Early
Young athletes often underestimate the importance of estate planning, assuming it’s only necessary later in life. However, with significant assets and income streams starting early, having an estate plan helps:
- Protect assets from unforeseen events.
- Ensure assets are distributed according to personal wishes.
- Minimize potential estate taxes and legal complications.
- Appoint trusted individuals to manage financial and medical decisions if incapacitated.
Real-World Example: The Risks of No Estate Plan
The tragic passing of NBA player Lorenzen Wright highlighted the complications of dying without a clear estate plan. His family faced years of legal battles over asset distribution, emphasizing the importance of establishing clear directives early on.
Source: ESPN – Lorenzen Wright Estate Battle
Essential Estate Planning Steps for Young Athletes
Ron McCoy recommends starting with these key estate planning components:
1. Establish a Will and Trust
A legally binding will ensures assets are distributed according to your wishes. For athletes with significant assets, a living trust adds an extra layer of protection, bypassing probate and maintaining privacy.
2. Assign Power of Attorney
Designate a trusted agent to manage financial and legal affairs if you become incapacitated. This proactive step ensures continuity and protects your financial interests.
3. Healthcare Directives
Athletes should establish healthcare proxies and living wills to appoint someone to make medical decisions on their behalf in case of serious injury or illness.
Case Study: Proactive Estate Planning
Ron assisted a collegiate athlete who had recently secured multiple high-value NIL deals. Although only 21, the athlete wanted to ensure her growing assets were protected. Ron guided her through drafting a will, setting up a revocable trust, and appointing both a healthcare proxy and power of attorney, establishing a robust plan that provided clarity and security.
Actionable Tips for Young Athletes
Ron advises athletes to follow these steps:
- Start Early: Don’t wait for a major life event—start estate planning as soon as you begin earning.
- Review Regularly: Update your plan regularly to reflect new assets, career changes, and personal milestones.
- Consult Professionals: Work with experienced estate planning attorneys and financial advisors to ensure legal compliance and comprehensive protection.
Ron McCoy’s Expert Approach
Ron takes a proactive, education-first approach to estate planning, emphasizing the value of preparedness. His guidance ensures athletes protect their growing wealth, avoid legal complications, and build a foundation for long-term security and peace of mind.
