The NCAA’s Name, Image, and Likeness (NIL) policy has opened the door for college athletes to earn income through sponsorships, endorsements, and personal branding. As student-athletes take on these new financial opportunities, many are experiencing significant income for the first time—making estate planning for college athletes a critical step toward protecting their future.
Why Estate Planning Is Essential in the NIL Era
Early financial success can be empowering—but without a plan, it can also be risky. From overspending and poor investments to unexpected taxes and legal exposure, NIL earnings come with complex responsibilities. A thoughtful estate plan helps manage income, minimize risk, and safeguard long-term goals.
Smart Tools for Estate Planning for College Athletes:
Revocable Living Trusts
Ideal for managing and distributing NIL earnings over time, these trusts offer flexibility and privacy while keeping control in the athlete’s hands.
Spendthrift Trusts
These limit access to funds and protect assets from creditors or irresponsible spending—a valuable tool for younger individuals adjusting to new wealth. These financial tools are key components of estate planning for college athletes in the NIL era, helping them manage new wealth with long-term goals in mind.
Guardianship Planning
For student-athletes under 18, guardianship ensures a trusted adult manages financial decisions until they reach adulthood.
Tax Planning for NIL Income
NIL income is taxable under federal and state law. Whether the earnings are direct payments or channeled through an LLC, it’s vital to have a tax strategy in place. Tax planning is an essential part of estate planning for college athletes, especially as they earn across state lines.
Key tax considerations for NIL income include:
- Setting aside money for quarterly estimated payments
- Working with a CPA experienced in athlete compensation
- Understanding state-specific tax obligations for out-of-state travel and endorsements
Foundational Legal Documents for Protection
Student-athletes should have essential legal safeguards in place:
- Durable Power of Attorney: Appoints someone to handle financial decisions if the athlete becomes incapacitated
- Health Care Proxy: Authorizes someone to make medical decisions in emergencies
- HIPAA Authorization: Grants trusted individuals access to medical records
Planning Ahead Pays Off
The NIL era presents tremendous financial opportunity—but also new complexity. Estate planning for student-athletes helps protect what they’ve earned, align with tax requirements, and build a strong foundation for the future. With so much at stake, estate planning for college athletes is one of the most important steps they can take.
At Triangle Estate Lawyers, we help college athletes and their families make informed legal and financial decisions about NIL earnings, trusts, and long-term planning.
Call 919-851-3717 or schedule a confidential meeting with our team today.
