Estate planning is a crucial aspect of financial management for individuals of all walks of life, ensuring that their assets are distributed according to their wishes after their passing.

However, for LGBTQ+ individuals, there are specific legal and social considerations that can complicate the process.

From legal recognition of relationships to discrimination in healthcare, navigating estate planning as an LGBTQ+ person requires careful attention to detail and proactive steps to protect one's interests.

In this article, Paula Patton, a partner in our private client team, explores some key issues that LGBTQ+ people should be aware of when writing a will.

1. Legal recognition of relationships: While same-sex marriage has been legal in the UK since 2014, not all LGBTQ+ couples choose to marry or may have entered into civil partnerships before marriage equality was enacted. It's essential to understand that partners who are not married or civilly partnered do not automatically inherit from each other under the laws of intestacy. It is important that individuals ensure that their wishes are clearly outlined in a will to protect their partner's inheritance rights.
2. Children and parental rights: Parents, whether through adoption, surrogacy, or assisted reproduction, must consider the legal implications for their children in their estate planning. We would advise parents seek advice regarding the establishment of legal parental rights (for example through adoption or parental responsibility agreements) to ensure that their children are protected in the event of their death.
3. Guardianship arrangements: Only a person with parental responsibility can appoint a guardian. We can advise upon designation of testamentary guardians for your children in your wills. This ensures that trusted individuals are appointed to care for the children and make important decisions about their upbringing if both parents are unable to do so.
4. Health and Welfare Decisions: To ensure that LGBTQ+ individual’s voices are heard when in a healthcare setting, it is advisable to think about making a lasting power of attorney (LPA), appointing someone you trust to make decisions about your health and welfare where you are unable to make such decisions yourself.
5. Inheritance tax planning: Inheritance tax (IHT) can significantly impact the value of an estate passed on to beneficiaries. There may be inheritance tax implications for LGBTQ+ couples where they are not married or in a civil partnership. Utilising tax-efficient estate planning strategies can help minimise IHT liabilities and maximise the value of the estate passed on to loved ones.
6. Charitable giving: If LGBTQ+ individuals or couples are passionate about supporting causes that are important to them, including provisions for charitable giving in a will can ensure that one's legacy continues to support these causes and make a positive impact on the community. It can also be extremely tax efficient in terms of inheritance tax.
7. Name and gender marker changes: For transgender and non-binary individuals, ensuring that legal documents reflect one's true identity is essential for estate planning purposes. Updating legal documents, such as wills and deeds, with current name and gender marker information can ensure that one's wishes are carried out accurately.

Seeking the guidance of experienced legal and financial professionals who are knowledgeable about LGBTQ+ issues can help navigate the complexities of estate planning and create a comprehensive plan that reflects one's values and priorities. By taking the necessary steps to address these key considerations, LGBTQ+ individuals can achieve peace of mind knowing that their loved ones and assets are protected.

If you have any questions about this article please Paula Patton or another member of our team.