By Raymond Nash
LGBTQ+ Estate Planning
Charitable Giving
As we move through Pride Month, we are taking special consideration of the estate planning concerns that can face the LGBTQ+ community. The main component of estate planning is passing wealth to heirs. This becomes more complex when a person does not have any children. Although adoption and surrogacy are common for LGBTQ+ couples, not all couples want to have children. Plus, there are considerations for individuals who remain single for the entirety of their lives. Passing on wealth to loved ones who are not legal heirs is a big consideration. Some individuals without heirs will leave their fortune to a charity that they feel aligns with their beliefs and values.
Life insurance can be a manageable way to pass down wealth, since the beneficiary of a policy just needs to have an insurable interest (instead of a legal connection or a bloodline). In the case of charitable giving, the insured needs to have a history of contributing to the charity of their choice to create insurable interest. Life insurance has the power to amplify the value of a charitable gift. Gifting leverage may be possible because the death benefits provided are typically higher than the premiums paid. The degree of leverage achieved depends on the size of the policy’s death benefit, the health and life expectancy of the insured, and the total premiums paid.
Click on the article below to learn more about enhancing charitable giving using life insurance.
