Happy June and PRIDE 🏳️🌈 month!
Happy June and PRIDE 🏳️🌈 month!
Seven years ago as of June 26, the Supreme Court’s Obergefell vs Hodges decision granted gay couples the right to marry (you can read more about the decision here). This was historic and should be applauded. However, it did not erase all of the financial planning roadblocks that same sex couples must contend with throughout their lives together.
While there are certain protections at the Federal level, many states have still not equalized benefits, nor have they put into place anti-discrimination laws that can affect health care, and housing, for example. Family planning is another area that falls short in terms of legal and financial protections for the LGBTQ+ community.
I cannot discuss all of the ways to protect yourself, but will start here with a few important aspects to keep in mind as you consider your long-term financial goals as a couple and a family.
Let’s start with important estate planning documents to implement, and review periodically.
1. 🏥 Medical directives. Be sure to draft an appropriate Health Care Proxy, sometimes called a Medical Power of Attorney or Advance Directive. This will allow your spouse (or other loved one) to make medical decisions on your behalf if you become mentally or physically incapacitated. If you’re not sure where to start, www.glad.org has some great educational materials as well as access to LGBTQ+ friendly attorneys throughout the country who can assist you with these documents.
2. 📜 Wills and Trusts. Should you predecease your partner, both of these legal documents will help you help your loved ones receive the assets you’d like them to receive. In absence of these legal documents, many states default by directing your assets to a legal spouse, or next of kid (blood heirs). Again, if you’re not sure where to start, GLAD has some great educational materials as well as access to LGBTQ+ friendly attorneys throughout the country who can assist you with these documents.
3. 👵🏽 And if you are an LGBTQ+ senior with no prior estate documents, SAGE is a great organization that advocates for LGBTQ+ elders. They have a wealth of information and resources. Further, their long-term care equality index is striving to have more service providers commit to equality of care for LGBTQ+ seniors.
Now let’s turn to the world of financial planning and investing and my top 4 issues to think about in honor of Pride month.
1. 📑 Account titling should be coordinated with your will. The titling of your account, or named beneficiaries, typically dictates how the account assets are handled upon your demise. So review your account titling every few years – this is especially important if you live in a state that does not recognize same-sex marriage.
2. ❤️ LGBTQ+ friendly Investing. Did you know that it is possible to invest with your values? If you’re interested in learning more about how to invest and support LGBTQ+ friendly companies, let’s chat.
3. 🎗 Charitable giving. If you’re philanthropically inclined, we have several financial planning techniques at our fingertips that can help you support your LBQTQ+ organizations while possibly also receiving a break on your taxes. For example, in high-income years, you should discuss the benefits of creating or adding to a Donor Advised Fund. These DAFs, as they are often called, allow for immediate tax deductions while also providing more time to determine which organization you’d like to direct your philanthropic dollars to.
Another technique once you’re over 70.5 is to direct your retirement funds distributions directly to a philanthropic organization – this is called a Qualified Charitable Distribution. As always, please consult a tax specialist prior to engaging in any of the mentioned strategies.
4. 👩👩👧👧 Long-term care insurance is important for everyone, but even more so for same-sex couples. This is because they tend to age together – causing the need for services at the same time, which can be financially taxing for their household. And single LBGTQ+ individuals may also want to consider Long-Term care insurance to ensure there are resources available for an acceptable level of care when they need it.
For some sobering statistics on the cost of care in your area check out this Cost of Care Calculator which does a great job comparing costs across the country. For example, in my area, Boston, MA, the annual cost for an assisted living facility is projected to be $81,825, while a home health care aid for 44 hours over 52 weeks is projected to cost $74,932. See below:
There are SO many more issues and challenges to address if you’re LGBTQ+, but I’m always happy to discuss, help educate, and strategize where possible. In my family, I’m hopeful that all four of my daughters will find love and create happy families in their own ways.
Here you can see my lovely Sofia in her Pride bracelet eating her Pride-colored snow cone!
If you’d like to learn more about how I/we can assist you with your financial situation or goals, please reach out to schedule a consultation, and Happy Pride 🏳️🌈 Month!
✌🏿Peace and ❤️ love,