Financial planning concerns for the LGBTQ+ community have been a topic of growing importance in recent years. Despite significant progress in terms of legal rights and societal acceptance, members of the LGBTQ+ community still face unique financial challenges that can affect their long-term financial security.
Lack of Legal Protections
One key concern is the lack of legal protections in some jurisdictions, which can impact areas such as inheritance rights, tax benefits, and access to spousal benefits. This can complicate estate planning and require LGBTQ+ individuals and couples to take extra steps to ensure their assets are protected and distributed according to their wishes.
Steps can include having a durable power of attorney, a living will, a medical power of attorney, privacy authorization forms, understanding same-sex marriage domestic partnerships vs. civil unions, an estate plan, and potentially second-parent adoption and guardianship appointments. (1,2,3,4,5)
Healthcare Costs and Insurance
Another significant concern is healthcare costs and access to adequate insurance coverage. LGBTQ+ individuals may face specific health disparities and have higher rates of certain health conditions, making comprehensive healthcare coverage crucial.
However, discriminatory practices and limited coverage options can make it difficult for some members of the community to find affordable and inclusive insurance plans. It is important for LGBTQ+ individuals to research and explore their options carefully to find insurance plans that not only meet their healthcare needs but also provide appropriate coverage for transition-related care if desired. The average cost of individual gender-affirming surgical procedures can range from $8,000 to $64,000 before/without insurance.
Financial Planning for LGBTQ+ Individuals
In light of these concerns, financial planning for LGBTQ+ individuals should prioritize proactive steps to help safeguard their financial well-being.
Seeking advice from financial professionals who specialize in LGBTQ+ financial planning can also be beneficial, as they can provide guidance on tax strategies, retirement planning, and investment opportunities that align with their unique circumstances.
For example, LGBTQ+ individuals may need to plan differently for long-term care needs. Caregiver support structures may be different for LGBTQ+ individuals, involving more “families of choice,” and there may be a greater need for protection through long-term care insurance.
Another area with potentially a greater need for planning is expanding your family. LGBTQ+ individuals may have different financial needs related to having children, such as planning for IVF or other fertility treatments that are not always covered by insurance. Comprehensive financial planning can help address not only long-term goals like retirement, but also shorter-term goals such as these.
Additionally, staying informed about changes in laws and regulations that affect LGBTQ+ rights and finances can help individuals and couples adapt their financial plans accordingly. By addressing these concerns and taking proactive steps, LGBTQ+ individuals can work toward building a stable and prosperous financial future.
Face Your Challenges With a Caring Financial Team
Are you ready to work with a financial advisor who’s familiar with the challenges your family faces? Reach out to us at 434-202-2521 or use our Contact Us page to schedule an appointment.
Jacquelyn Nasca has been with Wilkinson Wealth Management in a variety of capacities since 2012. She brings 14 years of experience as an Accredited Financial Counselor® helping families improve their financial status, eliminate debt, plan for their financial future, and address the emotional challenges many people experience around money. She also holds a Bachelor of Science from East Tennessee State University and a Master of Science in Marriage and Family Therapy from the University of Maryland.
In addition to being a member of the Financial Therapy Association, she has professional certifications as a Clinical Fellow in the American Association of Marriage and Family Therapy (AAMFT) and as an Accredited Financial Counselor® (AFC®) with the Association for Financial Counseling, Planning, and Education® (AFCPE®). Jacquelyn also has 24 years of leadership experience as a U.S. Army Officer (MAJ, Ret) in the Military Intelligence and Personnel and Human Resources corps, 6 years of financial advisor administrative and compliance operations, and 24 years of marriage and family therapy services.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.