Marriage equality helped to level the playing field for same-sex marriages. Even with this huge leap forward, there remains many legal inconsistencies from state to state for those who identify as lesbian, gay, bisexual, transgender, or queer (LGBTQ).
This creates an important need for LGBTQ financial planning.
And while the barrier to marriage has been lifted, several years later 42% of same-sex households remain unmarried. This compares to opposite-sex couples, where fewer than 12% are unmarried partners.
Now factor in that many Americans pass away without a will, including those who are LGBTQ, the need for trust and estate planning becomes an even larger point of consideration within LGBTQ planning.
The decision to marry your partner is personal choice, regardless of how you identify or the law. This decision, though, does affect your financial life especially if you choose not to get married. The good news is that you can take control of some financial matters on your own by implementing some of the following strategies.
LGBTQ Couples Can Protect Their Financial Interests
In your relationship, you may already be commingling your financial affairs. You may even eventually entrust your partner in all things financial. But this commitment level also adds potential complexity when it comes to issues like future estate planning.
For example, if you are not married, there are risks that your savings, property, or care of children could inadvertently pass to someone other than your partner. This may be even more of a risk for those who identify as LGBTQ (for example, unfavorable outcomes with your blood relatives).
To ensure your intentions are followed, here are some estate planning tools and strategies to help protect yourself and your partner’s interests:
Modera Can Help LGBTQ Couples Plan Ahead
Our team at Modera Wealth Management includes LGBTQ financial advisors and allies serving the needs of the LGBTQ community. We can help you assess your unique situation and determine a plan of action to protect your financial interests, both now and in the future. To learn more, please contact Mindy Neira.
Modera Wealth Management, LLC (“Modera”) is an SEC-registered investment advisor with places of business in Massachusetts, New Jersey, Pennsylvania, North Carolina, Georgia and Florida. Modera may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements. SEC registration does not imply any level of skill or training. For information pertaining to our registration status, fees and services, please contact us or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov) to obtain a copy of our disclosure statement set forth in Form ADV Part 2A. Please read the disclosure statement carefully before you invest or send money.
This article is limited to the dissemination of general information about Modera’s investment advisory and financial planning services that is not suitable for everyone. Nothing herein should be interpreted or construed as investment advice nor as legal, tax or accounting advice nor as personalized financial planning, tax planning or wealth management advice. For legal, tax and accounting-related matters, we recommend you seek the advice of a qualified attorney or accountant. This article is not a substitute for personalized investment or financial planning from Modera. There is no guarantee that the views and opinions expressed herein will come to pass, and the information herein should not be considered a solicitation to engage in a particular investment or financial planning strategy. The statements, information and opinions expressed in this article are subject to change without notice.
Investing in the markets involves gains and losses and may not be suitable for all investors and should not be considered a solicitation to buy or sell any security or to engage in a particular investment or financial planning strategy. Individual client asset allocations and investment strategies differ based on varying degrees of diversification and other factors. Diversification does not guarantee a profit or guarantee against a loss.