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7 minute read

NFL Estate Planning: A Guide to Building a Legacy Beyond the Field

Trust & Will explains the importance of estate planning to secure your legacy, whether you’re an NFL player or not.

Maya Powers

Maya Powers, @MayaPowers

Estate Planning Content Expert, Trust & Will

The Kansas City Chiefs defeated the 49ers during Super Bowl LVIII hosted at the Allegiant Stadium in Las Vegas, Nevada. The team thrilled their fans as they reversed the game in overtime, beating the San Francisco team 25 - 22. The Chiefs have joined the top tier of National Football League (NFL) franchises who have won four or more Lombardi Trophies.

This is a back-to-back win, and the third championship in five years, not only securing the Chiefs' legacy but also cementing dynasty status.

While NFL players may be thinking about these concepts in the context of sports, it would also be beneficial to consider how to secure and protect their legacies off the field. It's time for estate planning to come off the sidelines and into center field.

Key Considerations for NFL Estate Planning

NFL athletes are in a unique position. The median wage for an NFL player is $860,000, while a quarterback can make several million.

While the average person would be envious of this massive income, know that NFL players have short careers. The average run with the NFL is just 3.3 years. While a professional athlete has the potential to amass a fortune in a few short years, they also need to be thinking about making it last a lifetime.

Further, NFL players deal with one of the most physically demanding jobs that you can think of. Football is a contact sport with a high risk of injury, including hard hits and collisions.

This means that estate planning as an NFL player isn't just about distributing wealth, there are other risks and considerations to address.

Here are some of the top special estate planning considerations for NFL players:

  1. Asset Protection

  2. Long-term Financial Security

  3. Tax Planning

  4. Legal Protections

  5. Succession Planning

  6. Healthcare

  7. Philanthropy

Asset Protection

Your financial journey, much like a playoff game, can be unpredictable. It involves fluctuating income, varying career lengths, and unexpected expenses unique to the life of a professional athlete. Planning is key to ensuring that your wealth-management strategy is strong, both during and after your playing days.

Athletes often face scrutiny, both in the public eye and privately, which can extend to their financial decisions. It is not only wise but necessary to have a strategic asset protection plan in place to safeguard your wealth from potential legal disputes.

Imagine having a defense against unforeseen opponents such as creditors, litigation, or the IRS, who could potentially impact the value of your estate.

Long-term Financial Security

Mentioned earlier, NFL players on average have a dramatically short career span compared to other types of professionals. Imagine retiring after just 3 to 4 years (of course, there are exceptions.) While these athletes may earn upwards of a million or more per year, this time is limited.

Here are some alarming statistics to note:

  • 15.7 percent of NFL players have filed for bankruptcy within 12 years of retirement

  • 16 percent of retired NFL players go bankrupt

  • 78 percent of NFL players face serious financial hardships after retirement

These statistics are reported by the National Bureau of Economic Research, Fortune, and Sports Illustrated, respectively.

Estate planning is critical to make sure that not only this income is protected, that they are turned into income-producing assets that are managed efficiently. The end game is to provide financial security for the rest of their life.

Tax Planning

Navigating tax implications requires the keen instincts of a seasoned quarterback, strategically calling the right audibles to minimize losses and maximize gains. NFL players, with their substantial income, endorsement deals, and unique career circumstances, face intricate tax situations. To mitigate potential tax liabilities, estate planning plays a crucial role, leveraging tools like income tax planning to ensure a greater retention of earnings. Additionally, players can effectively manage gift and estate taxes, safeguarding a larger portion of their assets to be passed on to Beneficiaries without burdensome tax implications.

Legal Protections

Additionally, due to their high-profile nature, they might face unique risks like potential lawsuits, which further underscores the importance of estate planning. By proactively setting up legal protections, players can shield their assets from creditors and judgements. An empathetic approach to estate planning can help ease the stress of these concerns, providing a sense of security and peace of mind for athletes and their families. By being informed about potential risks and taking necessary precautions, players can focus on their careers without added worries about financial stability in the future. With the help of a trusted financial advisor, players can navigate the complex world of legal protections and ensure that their wealth is safeguarded for themselves and their loved ones.

Succession Planning

A succession plan ensures that control of your assets aligns with your game book, long after you hang up your cleats. This involves designating a trusted individual or team to manage your affairs in the event of incapacitation or death, as well as distributing your assets according to your wishes. Succession planning also allows for a smooth transition of business interests and personal wealth, minimizing any potential disruptions to your family's financial stability.

It's important to regularly review and update this plan as your circumstances change, and to involve your family in the decision-making process to ensure that their needs are also taken into account. By carefully planning for the future, players can leave a lasting legacy both on and off the field.

Healthcare Planning

In the physically demanding world of the NFL, where injuries are not just a risk but an expectancy, having a robust healthcare plan is crucial. A comprehensive healthcare strategy includes creating directives that clearly outline your wishes for medical care, should you become unable to communicate those decisions yourself. This ensures that you maintain control over the type of care you receive and alleviates the emotional burden from your loved ones during difficult times.

Additionally, appointing a Medical Proxy — someone you trust to make healthcare decisions on your behalf — is an essential step. It allows for a seamless decision-making process, ensuring your health is in the hands of someone who understands your values and wishes intimately. Empathetic planning today equips you and your family with the tools for a more secure tomorrow, providing reassurance that, regardless of what happens on the field, your health and wellbeing will always be a priority.

Philanthropy

Many NFL players are actively involved in the philanthropic community, often giving back to their own communities while also supporting nonprofits of their choice and speaking out on behalf of causes that they care about.

An important aspect about leaving behind a legacy is creating an estate plan that includes directives regarding philanthropy, if the individual were to become incapacitated or pass away. There are several different mechanisms that can be utilized, such as Charitable Trusts, donor-advised funds, or even a private foundation created in the individual's name. These are powerful tools that can help a player integrate their personal values into their wealth management strategy. They can ensure that their contributions will have a long-lasting, positive impact.

Top Estate Planning Tools for NFL Players

When it comes to estate planning, NFL players have several options at their disposal to manage their wealth, protect their legacy, and support their families as well as the causes they hold close to their heart. Below are some key tools designed to provide peace of mind and ensure a well-structured estate plan.

  • Wills: A Will is the cornerstone of any estate plan, enabling you to clearly specify your wishes regarding the distribution of your assets. It's a personal message to your loved ones, ensuring they are cared for according to your directives.

  • Trusts: Trusts are incredibly flexible instruments that can be tailored to your specific circumstances—such as a Revocable Living Trust, which can be altered during your lifetime, or an Irrevocable Trust, providing tax benefits and asset protection.

  • Power of Attorney: A financial Power of Attorney appoints a trusted individual to manage your financial affairs if you're unable to do so, a vital step for anyone, but especially for those who have a significant amount of wealth or property. This can be especially wise to implement for professionals with careers that come with risk of serious injury.

  • Living Wills and Health Care Proxies: These documents empower you to make your healthcare preferences known and designate someone to speak on your behalf if you're incapacitated, thus providing clarity and compassion at what can be an extremely challenging time.

  • Life Insurance Policies: Life insurance can provide your beneficiaries with immediate financial support, helping to cover estate taxes or leaving a legacy for your family and favorite charities.

  • Charitable Giving Tools: If philanthropy is an essential part of your values, consider tools like Charitable Trusts or Donor-Advised Funds to set aside assets for charitable contributions, typifying your commitment to making a difference.

Each of these tools offers different benefits and can be customized to align with your unique life situation, goals, and values. An estate planning professional can provide invaluable guidance, ensuring you choose the right combination of tools to craft a comprehensive, considerate, and effective estate plan.

Estate Planning with a Legacy in Mind

Legacy planning for NFL players reaches beyond the tangible assets accumulated throughout a career on the field. It's about crafting a lasting impact that resonates with one's values and vision for the future. Many players leverage their platform to convey life lessons and personal experiences, setting a precedent for the next generation.

For example, an individual could create mission and vision statements for their families and put it in writing. This can help establish the core principles they stand for, ensuring these guide future generations even in their absence.

Another example of estate planning through the lens of creating a legacy is engaging in impact investing. This is an area of investing not just for financial gain but in a manner that reflects your personal values. For example, you can invest in entities and companies that align with your personal ethical or philanthropic ideals. For a public figure, such considered planning ensures their legacy is felt in the community and beyond, creating ripples of positive change that endure.

This will also create a legacy to be inherited by future generations of athletes. You can quite literally lay out a path in which an NFL player isn't doomed to bankruptcy and financial ruin. Instead, you can be a part of creating a culture in which financial assets are not only protected, but utilized for long-lasting impact for generations to come.

Examples of Success Beyond the Field

Many NFL athletes have set powerful examples by constructing legacies that extend far beyond their accomplishments in the stadium. Players like Peyton Manning, who established the PeyBack Foundation, have made remarkable contributions to at-risk youth, focusing on programs that foster leadership and growth. His work off-field embodies the values he holds dear and sets a pathway for future stars to follow.

Another example is Warrick Dunn, a former NFL running back who has made significant strides through his charity, Warrick Dunn Charities, aiding single parents in homeownership. This initiative has not only provided safe living environments but has empowered families by promoting stability and independence. These endeavors illustrate how players can transition from the game into roles that create social and economic benefits for others.

Ronnie Lott, known for his ferocious playing style, exhibits the same passion for philanthropy through his involvement with the All Stars Helping Kids organization. This nonprofit works to disrupt the cycle of childhood poverty and encourage innovation by supporting other nonprofits in the Bay Area. His commitment to community well-being shows that the principles learned on the field—teamwork, dedication, and resilience—translate powerfully into social responsibility.

The empathy, care, and foresight these players display create an inspiring blueprint that encourages current athletes to think broadly about the impact they wish to make. By providing these cases of triumph outside of sports, we aim to reassure and motivate others to consider the long-term horizon of their influence and to invest in a legacy that endures.

Begin Your Dynasty On and Off the Field

Football fans across the globe are wondering who will claim the next championship. Will Kansas City further secure their dynasty by winning yet another Super Bowl next year? Or will another team rise to the top to start a legacy of their own?

Only time will tell. Regardless, what NFL players and professional athletes alike can do today is secure their personal legacies off the field by establishing an estate plan. Today we discussed a broad number of considerations unique to NFL players, and a handful of powerful estate planning tools to address them.

Trust & Will can be your partner in setting up your legacy for life. Let us equip you with an estate plan that champions your life's work and ensures your legacy can outlast even the most record-breaking careers.

Find out how to get started today.

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