The lives of football players and their levels of wealth often seems like a world away for many people but we can use them as an example when it comes to estate planning. In this short article, we’re going to take a few stories from the press about footballers and relate it to Wills.
Firstly – 17 year old Blackpool player Jake Daniels is the first professional player in England to come out as gay. When it comes to same sex relationships and Wills, in England and Wales, same sex civil partners or spouses are treated the same for inheritance purposes. This means that if a same sex couple are married or in a civil partnership any assets that pass between these individuals under the terms of their Will shall be exempt from inheritance tax. It also means that if no Will exists, they can benefit under the laws of intestacy.
Secondly – Wages are considered to be astonishing in football, simply because it attracts incredible revenue and sponsorship and TV rights. The Premier League’s highest paid player according to Boardroom.TV is Manchester United’s Cristiano Ronaldo. He is reported to earn £26,520,000 per season. These levels of wealth are incredible and many are jealous but with money comes problems though and tax is one consideration. It’s not only during our lifetime that we’re taxed. Upon our death, we are also taxed. Inheritance Tax is a paid by our estate after we’ve gone on anything we own over £325,000. If we assume that Ronaldo only has £26,520,000 when he dies his estate would still be liable for £10,478,000 which is essentially 40% of his estate (over the NRB).
Obviously it’s a very complicated subject and anyone with levels of wealth or assets should seek professional advice.
Lastly, football clubs are an asset with a value, as we’ve recently seen through the sale of Chelsea Football Club. When you pass away, these assets need to be taken into account. It’s possible that you might be entitled to tax reliefs on business assets. Something like Business Property Relief (BPR) but again, advice should be sought. Remember also that if you have people reliant upon you for income (or for income from the business) then commercial or business estate planning is vital. It becomes more than just about Wills here and we can start to look at commercial LPAs to ensure the business can continue to run smoothly without you, that wages or bills can still be paid and that the team know who will continue to run the club.
Three very quick but important examples here. Please don’t take the examples provided as advice. They merely demonstrate what could happen but without professional advice, you could find yourself in a difficult situation.
If in doubt speak to us about your circumstances.
