As a professional rugby player, you build a legacy on the pitch by competing against the best teams in the world and creating lasting memories for your fans.
It is also important to consider the legacy you leave for your family when you are gone. Unfortunately, many adults neglect this area of their financial plan.
According to Canada Life, 51% of UK adults do not have a will. The reasons for this vary, with 26% of people believing they do not have enough assets, and 23% saying they have plenty of time to sort it out in the future. You might also fail to make a will because you do not like thinking about your own mortality.
However, it is important that you have a clear will to protect yourself and your family, no matter how old you are.
November is the perfect time to consider your estate plan as it is Will Aid month, when participating solicitors offer free will writing services if you donate to charity.
Read on to learn the importance of creating a clear will, no matter where you are in your rugby career.
You could fall seriously ill or sustain a fatal injury at any age
When you are in the early stages of your playing career, you might not think about estate planning. After all, you are young and as an athlete, likely in good physical health. As such, you may not consider what would happen if you passed away unexpectedly.
However, there is a chance that you could fall seriously ill at any age. For example, according to Cancer Research UK, cancer rates in 25- to 49-year-olds rose by 24% between 1995 and 2019, with 100 younger adults diagnosed every day between 2017 and 2019.
Additionally, it is important to remember that rugby is a contact sport and while the laws of the game protect you as much as possible, there is still a chance you could sustain a fatal injury.
All this to say, you could pass away unexpectedly at any age and if you do not have a will in place, you might leave your family in a difficult position.
Whether you are at the start of your career or have already retired from playing, passing away without a will could mean that your estate is not divided as you intended.
Your estate may not be divided according to your wishes without a will
One of the key reasons to create a will is that it allows you to decide how your estate is divided when you are gone.
If you pass away without a will, your estate is normally divided according to the “rules of intestacy”.
Under these rules, your spouse or civil partner inherits the first £322,000 worth of your estate. The remainder of your estate is divided as follows:
- 50% goes to your spouse or civil partner.
- 50% is shared equally among your children.
If you do not have any children, your spouse or civil partner inherits everything.
This might align with your wishes, but it could mean that certain family members, such as your siblings, will not inherit anything, even if you wanted them to.
Additionally, if you are not married, your partner does not automatically inherit anything. Unfortunately, Today’s Wills and Probate reports that 32% of cohabiting couples mistakenly believe that their estate will automatically pass to their partner after they are gone.
In reality, your partner is not entitled to any part of your estate and instead family members including parents and siblings will normally inherit everything.
There could also be a risk of “sideways disinheritance” if you are part of a blended family.
For example, if you get divorced and remarry, your existing will is invalidated. If you then pass away without creating a new one, your spouse or civil partner could inherit your entire estate and children from a previous relationship might be overlooked.
This is just one example of how sideways inheritance could affect you.
Creating a detailed will allows you to decide exactly who inherits what when you pass away, so you can ensure your wishes are fulfilled.
Putting a clear will in place could also help prevent disputes among your loved ones after you are gone.
Your will allows you to make important decisions about other aspects of your life
The figures from Canada Life revealed that 26% of adults without a will said they did not believe they had enough assets to warrant one.
You may think this way if you have only just signed your first professional rugby contract and do not have significant assets at this stage.
Yet, regardless of how much wealth you hold, you no doubt still want it to be inherited by the right people. Additionally, there are many other benefits to creating a will. For example, you could:
- Specify arrangements for your funeral
- Appoint a guardian for your children
- Decide who cares for your pets.
That is why, no matter what stage of your career you are at, you may benefit from creating a will. If you already have an estate plan in place, make sure to update it regularly. This is especially important as you reach certain milestones such as moving to a new team, purchasing a house, starting a family, or retiring from playing.
Get in touch
If you need guidance with your estate plan, then please do get in touch with us at DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This blog is for general information only and does not constitute financial or legal advice. The information is aimed at retail clients only.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate estate planning or will writing. Tax is subject to change.
