WAY Investment Services has launched a new trust to help professional sportspeople who are planning for the years beyond their peak earnings.

The financial planner’s new Pro Sports Trust has been designed to help sportspeople establish, build and safeguard money during high-earning periods in their career. Later on, when earnings may have reduced, the funds can then be accessed.

WAY suggested that many professional sportspeople may see their income peak in their twenties or thirties, leaving a number of years before retirement and the point at which they can access any pension. Aside from normal retirement, sporting professional also face the risk that their career could end sooner than expected due to injury.

If needed, WAY’s trust would allow income to be released every year, with decisions made at the discretion of trustees. The financial planner described the trust as a “flexible, reversionary, interest-in-possession trust” which makes use of the normal expenditure from Inheritance Tax (IHT) exemption – meaning gifts to the trust are immediately exempt from IHT.

This exemption will be 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.

WAY head of sales, John Humphreys, commented: “Many sports people, if they are fortunate and remain injury-free, can expect to retire from professional sport in their thirties. 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 WAY 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.”

Share Story: