Those wise words were once spoken by Arnold Mandell, the first psychiatrist to work for the National Football League back in the 1970s. I spend hours each week in front of the television, more than I’d probably like to admit, rooting for my teams and getting carried away on the emotional roller coaster that comes along with each season. My wife has decided to join me in my obsession, shocking friends and family when things like “he should have been ruled down by contact” or “that wasn’t a fumble, his arm was coming forward” resonate from her mouth. (All the while bringing a smile to my face.) Of course I am also passionate about the law and athletes never fail to amaze me with some of their antics and decisions. Plaxico Burress, Mike Tyson, Tonya Harding and countless others have had highly publicized legal troubles during their athletic careers but these are not the sort that concern me.
What concerns me are the stories that don’t get as much public attention but probably have a lot more value to the average person. A recent example is the late Steve McNair, former MVP quarterback of the Tennessee Titans. It was reported that he earned in excess of $75 million during his career yet he died “intestate”, meaning without a Will to determine how his estate should be distributed. When someone dies intestate, the laws of the state step in to determine where assets must go.
When McNair passed away back in July, Tennessee intestacy laws provided that his wife was entitled to only 1/3 of his estate, with the other 2/3 passing directly to his children. (In Pennsylvania the spouse and children are each entitled to roughly half.) To make matters worse, it was reported that in addition to the children he fathered with his wife, McNair had two children with other women out of wedlock. The fact that all of the children were minors also creates issues because a guardian must be appointed to handle their inheritance. (Pennsylvania adds insult to injury because the surviving spouse cannot be appointed as guardian.) Further, no distribution plan was established for any of the children so when each child reaches the age of 18, their entire share will be given to them outright, with no staggered distribution. This is a scary thought for anyone who knows how careful most teenagers are with their money.
Without planning, McNair was also unable to shelter any portion of his estate from federal estate tax or state inheritance tax and could not take advantage of the unlimited marital exemption. This greatly reduces the eventual distributions that each of his heirs will receive. Finally, it appears that McNair owned property in Tennessee and Mississippi, which means that it is more than likely whoever stepped in as the executor will have to probate his estate in both states. This adds cost, aggravation, and additional public scrutiny that could have all been avoided with some simple estate planning documents.
With all the money that athletes make in professional sports today and the guidance they receive from advisers and agents it amazes me that someone like Steve McNair could go through his entire career without anyone sitting him down to assure he had his personal affairs in order. I only hope that whether you are an NFL quarterback, a cashier who gives quarters back as change, or somewhere in between, you will take a few minutes to assess the state of your own planning. If you keep putting it off or have recently undergone some change in your life, like welcomed a new child into the world or got married, I encourage you to take charge and put a plan in place for your future. A Will or simple estate plan can go a long way to protect your spouse, provide for your children, and save your heirs a lot of money in taxes and legal fees by simply being pro active. (OK, now back to the game.)
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