Financial planning is an essential part of building a secure life together. For LGBTQIA+ couples, that process may require additional steps to ensure both partners are fully protected and positioned to meet their shared goals.
While legal recognition of same-sex marriage has opened doors to tax and estate benefits, gaps in legal protections and lingering financial disparities mean that it’s still essential to plan with intent. Here are key financial strategies LGBTQIA+ couples can use to safeguard their assets, minimize risk, and build long-term security.
Secure legal and financial authority
Even if you’re married, it’s smart to have legal documents in place that reinforce your financial and health care wishes. This is especially important for couples facing complex family dynamics or living in states where laws are still evolving.
Be sure to review and update the following documents regularly.
- Durable power of attorney (financial decision-making)
- Health care proxy and living will (medical decision-making and end-of-life care)
- Wills or trusts that clearly outline asset distribution
- Beneficiary designations on retirement accounts, life insurance, and financial accounts
These documents help ensure that your partner can act on your behalf and distribute your assets according to your wishes, not default state laws.
Leverage tax and estate planning opportunities
Married LGBTQIA+ couples can now access the full spectrum of spousal tax and estate benefits under federal law, but these benefits require planning to take full advantage. Work with a financial advisor or tax professional to evaluate your options.
- Filing jointly vs. separately: Joint filing can offer tax advantages, but may not always result in lower liability.
- Estate tax thresholds: Spouses can transfer unlimited assets to each other at death. However, it’s still important to structure your estate to minimize taxes if your total assets exceed federal or state thresholds.
- Gifting strategies: Consider annual exclusion gifts or using a lifetime gift tax exemption to transfer wealth efficiently.
Trusts can also be a strategic tool for high-net-worth couples to protect assets, support long-term care needs, and preserve wealth for future generations.
Coordinate long-term goals and accounts
Many couples don’t realize that even small oversights, like outdated beneficiaries, can undermine their financial plan. Sit down together and review all accounts with a long-term lens.
Here are some key steps to take together.
- Ensure retirement and brokerage accounts have updated beneficiary information.
- Explore spousal IRA contributions if one partner has little or no earned income.
- Consolidate or align savings goals, like buying a home, paying off debt, or saving for a major purchase.
- Discuss your retirement timeline and whether your income and assets will support your lifestyle together.
Coordinated planning can help you avoid tax inefficiencies, duplicative fees, or missed opportunities for growth.
Plan for health, care, and coverage
Health care costs and long-term care needs are major factors in retirement planning. Yet many couples don’t discuss them until a crisis arises. LGBTQIA+ individuals may face unique health disparities and access to affirming care isn’t always guaranteed.
You and your partner should make time to go over the following.
- Compare health insurance options if you’re on separate employer plans.
- Plan for long-term care insurance or savings.
- Discuss preferences for end-of-life care and how you’ll fund those needs.
- Build an emergency fund to cover unexpected medical or caregiving costs.
Having these conversations now can help ensure you’ve chosen the best coverage options for you and your spouse, and prevent you from making such important decisions during a crisis.
Work with a financial partner who understands you
Your financial needs are unique and your financial institution should treat them that way. We’re proud to serve couples from all walks of life with guidance that reflects your values, protects what matters, and helps you reach your goals.
Whether you’re aligning your accounts, preparing for retirement, or reviewing your estate plan, our team is here to help you move forward with confidence.
Let’s build your future together
We offer tools, insights, and support to help LGBTQIA+ couples plan wisely and live fully. Reach out to start a conversation today.
