Professional Sports People urged to plan ahead as WAY Investment Services launches specialist Trust.
Professional Sports People need specialist financial advice and should be planning ahead for the years beyond their peak earnings, says WAY Investment Services today as it announces the launch of a new Trust.
Many professional sports people may see their income peak in their 20s or 30s, leaving a good number of years before retirement and the point at which they can access any pension. WAY Investment Services say it is particularly important for people in this situation to talk to a financial adviser about how they can best plan ahead. Aside from normal retirement, professional sports people also face the risk that their career ends sooner than expected due to injury.
The Pro Sports Trust has been designed specifically to help professional sportspeople to plan ahead. Through the trust, they can establish, build and safeguard money during high-earning periods in their career. Later on, when earnings may have reduced, the funds may then be accessed. If needed income can be released every year, at the discretion of the Trustees. As well as returning the money in tranches to the Sportsperson, loans can also be made to beneficiaries. It is not uncommon for family circumstances to change following a change in career. The Pro-Sports Trust can also help protect the assets should the Sportsperson get into financial difficulties or divorce.
The trust is a flexible, reversionary, interest-in-possession trust which makes use of the normal expenditure from income inheritance tax exemption, meaning gifts to the Trust are immediately exempt from inheritance tax. The exemption is granted so long as money paid into the trust can be shown to be from net taxable income (rather than capital), is intended to be made on a regular basis (typically monthly or annually) and does not reduce the settlor’s standard of living.
In conjunction with their Financial Adviser, the Sportsperson’s surplus net taxable income is invested in UK authorised and regulated investments that are placed into the trust and then managed by Trustees.
John Humphreys Head of Sales at WAY Investment Services, comments:
“It is fantastic to see sports people achieve at the highest level. To be a true winner requires immense focus and dedication, so making financial plans for a future after sport might well be the last thing on a person’s mind when they are striving to reach the top of their profession. Yet many sports people, if they are fortunate and remain injury-free, can expect to retire from professional sport in their 30s. Even at the height of their career they may experience large discrepancies in what they earn year to year. Planning ahead is the best way to avoid financial difficulty later on. Financial advisers have a crucial role to play in providing sound financial advice and support, ideally from the early days of a sporting career.
“The Pro Sports Trust encourages prudent planning, with a portion of income set aside during higher earning years, protected within the trust and managed by professional trustees. The funds can then be available in the future as needed through annual withdrawals or as loans to beneficiaries, and eventually passed on to beneficiaries.
“We want to see sports people thrive and achieve, and with solid financial advice be able to concentrate on their sport, rather than spend undue time worrying about their financial future.”
For more information please visit https://prosportstrust.wayinvestments.co.uk