Assembling an advisory team: long-term wealth management for entertainment industry professionals

Industry specialism

When assembling an expert legal and financial entourage, it is crucial to find professionals who fully understand how celebrity wealth planning differs from that of other high-net-worth individuals.

Unlike wealthy businesspeople and entrepreneurs who generate wealth primarily through equity, actors make most of their money through income. This is particularly important to note when assembling an expert entourage, as financial and legal experts with experience in this high income-derived wealth will better understand how to manage it – not least from a financial growth perspective, but also regarding taxation, which can be significant for high-income earners.

Accountants and tax solicitors

Because the income from film and television can be so significant, actors can be subject to heavy income taxation. This means having the right team to manage this is vital.

There may also be differences in taxation depending on the jurisdiction you work in. For instance, actors they may be on location anywhere in the world. So, it is important to work with accountants that know and have knowledge of the work in the relevant tax jurisdictions.

When it comes to tax, there are two types of advisers you need to consult:

• an accountant who can suggest appropriate measures to reduce your tax liability and ensure that you are paying the correct amount of tax for things like royalties and salary.
• a taxation solicitor, who will be able to ensure that any tax reduction measures are executed lawfully and in a way that will not jeopardise your reputation. 

Legal representation

The expertise, guidance, and advocacy provided by entertainment and sports lawyers can be crucial for celebrities in protecting your legal rights, advancing your careers, and navigating the complex landscape of the entertainment and sports industries.

These legal professionals specialise in the unique legal issues and contracts prevalent in these industries, including contract negotiations and reviews, intellectual property protection, licensing, and endorsements, personal branding, and reputation management as well as compliance with relevant laws, regulations, and industry standards.

Wealth management experts 

Income from film and television has been likened to a tap, flowing when actors have work and stopping when they are not working. The nature of the industry means it can be challenging to ascertain when – or if – the tap will turn on next. Because of this, managing risk effectively is vital to securing wealth over time. 

This is where financial advisers can be beneficial. They provide the expertise to support you to budget, invest, and protect wealth – no matter the flow of income.

Wealth management experts will be more helpful for established successful actors who have built significant cash savings and a pipeline of future work. Wealth managers can advise how an actor's wealth should be allocated and how to leverage income to maximise long-term wealth and financial security.