LGBTQ+ Estate Planning

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 disbursing assets.  Passing wealth to loved ones without a legal connection can require additional planning.  Life insurance policies can be a good solution, because they only require the beneficiary to have an insurable interest in the insured.  Insurable interest is demonstrated when the loss of a person would cause a financial strain or other hardship.  This is typically seen in immediate family, blood relatives, and romantic partnerships.

Another possible estate planning hurdle can be family dynamics.  If the first generation that accumulates wealth does not agree with the lifestyle of the second generation, estates are not always equally disbursed and special restrictions can be attached to an inheritance.  The example below demonstrates some additional planning that can be completed by a same-sex couple who faces an inheritance restriction.