When you are Jonathan Paul Manziel, the new rookie quarterback for the Cleveland Browns and received north of $8 million on your first NFL contract ... you might attract some attention. No, lots of it. This is especially true when your create a good bit of the attention yourself.
Consider a case filed by a federal inmate known to file baseless civil actions using the names of people in the news and entertainment industries. Here he used the name of a CNN reporter. The claim said Johnny Football had sexually harassed the plaintiff by posting inappropriate pictures on Instagram.
Jonathan Paul Manziel, former Heisman Trophy winner, is a great QB.
Johnny Football, on the other hand, gets out on the town.
In fact, tabloid reporters follow him from nightclubs to casinos to pool parties. A recent insurancenews.netarticle titled "Heisman Trophy Winner and NFL Rookie Quarterback Needs an Estate Planning Playbook Opines?" explains that he appears "to enjoy football, beautiful women, nightlife, and money, and not necessarily in that order."
This could be a problem.
The way Johnny Football is running around Vegas and spending his money—as well as defending all of the frivilous lawsuits—he could have potential money problems down the road.
The original article also reports that 78% of NFL players experience some form of financial hardship, even though they earn millions of dollars every year. Worse yet, many of these players will one day file for bankruptcy.
When you have an $8 million payday, it is not surprising that you gain numerous friends. And at least some of these friends will be looking for their own paydays.
The best play Jonathan Paul Manziel can call, even if he does ride the bench for a spell, is to consult an estate planning attorney.
While Jonathan Paul Manziel cannot shield his assets from current threats, through proper asset protection he can protect his assets from Johnny Football's future problems. One “player” to protect Manziel's financial "blindside" is an irrevocable trust. By placing his income and assets into an irrevocable trust, Manziel would put them beyond the grasp of Johnny Football's potential future divorces, lawsuits and bankruptcies.
But, if you are Johnny Football, then this is a downside.
When the assets are in an irrevocable trust, they do not "belong" to Johnny—they belong to the trust, and the trustee is in charge of the trust assets. An irrevocable trust would allow Johnny use of trust assets so he can maintain the lifestyle to which he has so quickly become accustomed.
An irrevocable trust could help keep Jonathan Paul Manziel from being broke at age 40.
Note: Irrevocable trusts can be extremely complex, especially when asset protection is the goal. Be sure you work with an estate planning attorney with considerable experience both with irrevocable trusts and asset protection planning.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri) and to download free tools to help you organize your estate, visit my estate planning website.
Reference: insurancenews.net (August 14, 2014) "Heisman Trophy Winner and NFL Rookie Quarterback Needs an Estate Planning Playbook Opines?"