NFL quarterback, Patrick Mahomes, II recently signed a 10-year, $500 million dollar contract; the highest in league history. Although it is not uncommon for elite football players to sign multi-million dollar deals, Mr. Mahome’s deal provides him with the type of wealth which requires a multi-generational estate plan. Here are some of the top 5 estate planning strategies Mr. Mahomes needs to do now: 1) Implement advanced estate planning utilizing trusts. Trusts can pass on his wealth without public knowledge and save in his case millions of dollars in court fees, taxes, and professional service costs. 2) Install Asset Protection. Let’s face it, Patrick is a target for lawsuits. Most NFL players do not wrap asset protection into their current estate plan, if they have one at all, and regret it later. 3) Select a state. He should choose a jurisdiction with the lowest trust tax rates and the most secure asset protection laws for trusts. He may even look at diversifying his risk with a peppering of offshore planning. 4) Create Dynasty Trusts. In addition to protecting his family when he passes while keeping his wealth within the same generational line, Dynasty Trusts can also diminish estate taxes and asset protection the wealth he passes on from one generation to the next. If these trusts were good enough for the Rockefellers, they are good enough for Patrick Mahomes. 5) Consider creating a Family Foundation. While serving the purpose of helping the public good, a foundation would save millions on estate taxes and provide a means to involve his family in making charitable decisions long after he is gone.
