June is a month dedicated to celebration and reflection for the LGBTQ+ community, marked by Pride Month. This period highlights the strides made in the fight for equal rights. Despite significant progress, including the legalization of same-gender marriage and increased recognition of LGBTQ+ families, a notable gap remains in estate planning for LGBTQ+ individuals, potentially leaving loved ones facing challenges.
Estate planning laws are primarily designed for hetero, cisgender individuals, posing a challenge for lawyers to tailor plans to the unique family dynamics and wishes of LGBTQ+ clients. Unfortunately, without a custom estate plan, LGBTQ+ family members or those in non-traditional family structures may find themselves unintentionally disinherited or entangled in lengthy and costly legal battles.
To understand why tailored estate planning is crucial for LGBTQ+ and all non-traditional individuals, let’s explore two key reasons:
1. Define and Care for Your Chosen Family
The concept of family has evolved beyond the traditional “nuclear family,” embracing diverse structures such as same-gender couples, unmarried partners, civil unions, and polyamorous relationships. However, estate planning laws have been slow to adapt, often failing to accommodate non-traditional family units as preferred by individuals.
In the absence of an estate plan, default laws apply the state’s predetermined estate plan, directing possessions and money to next-of-kin by blood or marriage. For LGBTQ+ individuals not legally married to their partners, this can result in automatic disinheritance of loved ones in case of death.
Similarly, children not biologically related or formally adopted may receive nothing from the estate if the individual dies without a plan. Even in marriage scenarios, stepchildren may not be recognized as direct descendants, leading to exclusion from default inheritance laws.
Creating a custom estate plan becomes essential to ensure assets are distributed according to personal wishes. This safeguards partners, children, and chosen family members, providing protection and care, regardless of legal recognition.
2. Safeguard Financial and Health Care Rights
In times of illness or incapacity, individuals often assume their long-term partners will make crucial decisions on their behalf. However, the law doesn’t align with this common-sense approach. Legal procedures, including stressful court guardianships, become necessary for family members to gain decision-making power.
Without a pre-established legal framework designating chosen decision-makers through Powers of Attorney, the court may appoint a professional guardian, potentially a stranger, to make decisions. This underscores the importance of naming decision-makers well in advance to avoid court involvement.
For LGBTQ+ individuals, especially those with lifestyle choices or beliefs requiring specific considerations, outlining these preferences in advance becomes crucial. Failure to document these wishes may result in decisions being made contrary to one’s identity or expressions.
Collaborating with a lawyer understanding the unique circumstances of LGBTQ+ individuals ensures protection of family, rights, and adherence to personal values. Despite legal gaps, a custom plan can encapsulate the diverse values, beliefs, and stories that define each unique family.
To cater to the specific needs of LGBTQ+ families, we offer guidance and expertise, crafting custom plans that prioritize protection, honor individual wishes, and embody the distinctive qualities of each family. To explore how we serve LGBTQ+ families differently, schedule a free 30-minute discovery call. Stay tuned for part two of this blog next week.
This article is presented by Michelle Bell, an expert in estate planning and business succession services. Our office provides comprehensive legal support for businesses, assisting you in making informed decisions throughout your entrepreneurial journey and in planning for future contingencies. We also offer a specialized session where we review your business’s legal structures. To arrange this consultation, please click the following link: https://calendly.com/mcblawpllc/30min.
The information in this article is intended purely for educational and informational use and should not be considered as advice on ERISA, tax, legal, or investment matters. For advice specifically tailored to your unique situation, such advice should be sought independently from this educational content.