Surging commercial investment in sport means that a lot of professional sports people and athletes have pretty healthy financial resources at a relatively young age.
As a result, many will financially support family members and friends throughout their careers and beyond, into retirement. This could be by way of one-off gifts and also through regular financial contributions.
It isn’t uncommon to come across clients who pay a sibling’s rent or credit card bills, purchase a home for their parents or support close friends by paying their monthly outgoings.
It is important though to think about, and get proper advice about, the implications of providing that type of support from a number of angles including, amongst other things, inheritance tax and creating any kind of financial dependency.
Indeed, what happens to those nearest and dearest in a worst-case scenario when the person who has been providing for them is no longer there? The harsh reality is that these payments don’t automatically continue and there needs to be specific provision in place if they are intended to. That can only be achieved by getting the best legal advice.
Understandably, this isn’t the sort of thing most people want to turn their minds to, let alone professional athletes in their twenties or thirties who are at the peak of their professional game and enjoying the fruits of their labour. That said, the importance of thinking about things sooner rather than later really can’t be stressed enough.
Above all else, having a Will in place is key. There are Wills that can set out very clearly and very specifically what someone wants to happen when they are no longer around. Equally, there are more flexible structures which allow trusted people to make key decisions about who should receive what and when. Such structures can also allow for any lifetime provision to continue.
Planning for the future really is about playing a long game and the sooner you start thinking about it, the better. Of course, life throws curveballs at us so any arrangements need to be kept under review, particularly at any key milestone moments such as marriage, divorce or when there’s a significant change in financial circumstances.
Getting advice now will ultimately end up giving you and loved ones who may rely on you, peace of mind.
If you, your client, or someone you know would like to know more about planning for the future, please contact Rachel James or a member of our Private Client Team.
