By Raymond Nash
LGBTQ+ Estate Planning
Trust-Owned Life Insurance
June is Pride Month. There are a few estate planning concerns that face the LGBTQ+ community. The Supreme Court ruled to protect same-sex marriage in 2015, but if that ruling is not upheld in the future the determination will go back to the individual states. There are 32 states that currently have bans against same-sex marriage. Passing on wealth to a domestic partner versus a spouse in an uncertain environment is a consideration for LGBTQ+ couples. Additionally, although adoption is common for LGBTQ+ couples, not all couples want to have children. Passing on wealth to loved ones who are not legal heirs is another consideration.
These concerns can be remedied by a life insurance trust that clearly defines the beneficiaries of any trust proceeds. Additionally, life insurance becomes a more 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). Click on the article below to learn more about the best practices for establishing a life insurance trust.