By: K. Eli Akhavan, Esq., Evan Bloom, Esq., Jonathan Shenkman, MBA,Martin M. Shenkman, Esq. Ben Utecht, and Eido M. Walny, Esq.1
Professional athletes face financial and legal risks that differ dramatically from most high-net-worth individuals—and they require estate and asset protection strategies that reflect those realities. In the NAEPC Journal of Estate & Tax Planning, Eido M. Walny, founder of Walny Legal Group LLC, co-authors a detailed guide outlining how advisors can protect athletes from the all-too-common pitfalls of sudden wealth, short career spans, and public exposure.
The article identifies key factors that put athletes at unique risk:
- Early financial peaks and variable income from endorsements
- Sudden wealth without corresponding financial literacy
- High rates of injury, divorce, and litigation exposure
- Pressure from family, entourage, and opportunists
- A lack of time and structure to properly manage wealth during active careers
Walny and co-authors advocate for a proactive and tailored approach that includes:
- Integrated tax, asset protection, and estate planning
- Early formation of trusts and irrevocable structures
- Strategic use of domicile planning, life insurance, and private equity filters
- Engaging a multi-disciplinary, independent advisory team
- Protecting against lawsuits and false claims with trust-based ownership and legal insulation
The authors emphasize that without strong, early planning, even athletes with massive earnings can end up financially vulnerable. Real-world examples—from multi-million-dollar bankruptcies to predatory legal claims—are used to illustrate how avoidable financial ruin often is.
Full article available at:
NAEPC Journal of Estate & Tax Planning – Issue 34 PDF
CITE AS: LISI Estate Planning Newsletter #2777 (Feb. 3, 2020)