Estate Planning for LGBTQ+ families

The landmark 2015 U.S. Supreme Court decision granting same-sex couples the right to marry has significantly simplified estate planning for LGBTQ+ families. With benefits like simplified taxes, improved insurance coverage, and enhanced spousal benefits, there are ample opportunities for wealth accumulation and transfer to care for loved ones.

Despite these advancements, LGBTQ+ families are still lagging in wealth accumulation compared to heterosexual counterparts. According to a recent UBS article:

• Only 20% of LGBTQ+ individuals have a will or estate plan, compared to 26% of heterosexual counterparts.
• LGBTQ+ individuals have lower participation in 401(k) savings accounts, with only 35% having one compared to 40% of heterosexual counterparts.
• The average retirement savings for same-sex couples is $66,000, significantly lower than the $88,000 median for heterosexual married couples.

Secure your family’s financial future with the following steps:

1. Obtain a Will or Trust

Consider a living trust for privacy and streamlined asset transfer, avoiding the complexities of probate court. Individual trusts allow for personalized asset distribution, crucial for LGBTQ+ individuals facing familial challenges. Origin’s Will and Trust plans can help you create a comprehensive estate plan tailored to your unique circumstances and needs, ensuring that your assets are distributed according to your wishes, regardless of traditional family dynamics or legal challenges.

2. Update and Monitor Beneficiary Designations

Ensure your spouse or partner is listed as the designated beneficiary across accounts, including IRAs and life insurance policies. Regularly review and update these designations to reflect life changes.

3. Navigate Tax Considerations

While estate taxes may not be an immediate concern, strategic planning is essential for wealth preservation. Utilize trusts to mitigate tax liabilities and secure multigenerational wealth transfer.

4. Establish Legal Authority

Safeguard decision-making powers with essential legal documents like a living will, healthcare power of attorney, durable financial power of attorney, and HIPAA privacy authorization form. These documents ensure your wishes are respected during times of incapacity.

By taking proactive steps to address estate planning needs, LGBTQ+ families can protect their financial well-being and secure a prosperous future for generations to come.

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