Planning with Pride: Navigating Financial Uncertainty

Discover strategies for LGBTQIA2S+ families to navigate financial uncertainty with proactive planning, estate tools, and insights from historical resilience.

8

Min Read

Introduction

In today’s uncertain political and legal landscape, the rights of LGBTQIA2S+ individuals and families face increasing scrutiny. Among the most pressing concerns is the potential rollback of federal marriage equality protections set by Obergefell v. Hodges which could leave the issue of marriage rights up to individual states and raise an eyebrow from the LGBTQIA2S+ community on what their marriage really means moving forward. For non-heteronormative, gender non-conforming families, and others outside traditional frameworks, this threat carries not only emotional weight but also significant financial and legal implications.

Before we begin, please know that this information is for educational purposes only and is not meant to be investment, tax, or legal advice.  Please reach out to a professional skilled in any or all of those areas who can speak to your particular situation.  

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Over the past few months, I’ve had conversations with clients who are deeply worried about what these potential changes might mean for their futures. Some are panicked, feeling stuck between the desire to protect their families and the overwhelming uncertainty of what steps to take next. Others are contemplating drastic moves—leaving their state, or even the country, in search of stability and security.

If you’re feeling this way, you’re not alone. These fears are valid, and the unknown can be daunting. But here’s something important to remember: this is not the first time our community has faced challenges like this. For decades, LGBTQIA2S+ individuals and families have creatively and successfully navigated these issues, even before marriage equality became a reality.

While a rollback of marriage equality would undoubtedly be a step back, the resilience of our community is proof that we are resourceful, determined, and capable of navigating even the most difficult circumstances. This blog offers strategies rooted in this history of strength, providing actionable ways to protect your family and move forward—without uprooting your life or losing connection to the people and places you love.

I. Why the Threat to Marriage Equality Impacts Financial Security

The potential rollback of federal marriage equality protections could create a fractured system where LGBTQIA2S+ couples face drastically different rights depending on their state of residence. For non-heteronormative and gender non-conforming families, this shift could have profound financial implications:

  • Tax Filing Status: The ability to file joint tax returns, which often provides significant savings, may no longer be an option in certain states.
  • Social Security Benefits: Spousal survivor benefits—critical for long-term financial planning—could disappear for couples in states that do not recognize their marriage.
  • Health Insurance: Many families rely on employer-sponsored spousal health insurance plans. Losing recognition of marriage at the state level could mean losing access to this vital coverage.
  • Healthcare Coverage: Deterioration in the climate for the LTBTQIA2S+ community may erode coverage for certain procedures or prescription drugs.  
  • Inheritance Protections: Without clear estate planning, account registrations, and/or updated beneficiary designations, non-biological family members may be prioritized over surviving partners.
  • Parental Rights: In states that rescind marriage protections, the legal recognition of non-biological parents could be jeopardized, creating additional financial and emotional challenges for families.

By understanding these risks, families can start taking concrete steps to protect themselves.

II. Protecting Your Spouse and Family in Uncertain Times

For LGBTQIA2S+ families, safeguarding loved ones requires proactive planning, especially during uncertain times. Consider these critical actions:

  • Emergency Funds: Build a fund covering three to six months of living expenses to safeguard against legal or financial disruption.
  • Healthcare Planning: Utilizing healthcare savings accounts and flex spending accounts wisely can assist with various medical costs, procedures and/or prescription prices that may go up or be removed from standard care previously covered by public or private insurance.  
  • Healthcare Directives and Power of Attorney: Secure documents that allow trusted individuals to make decisions on your behalf if you’re incapacitated.
  • Guardianship for Children: Formalize guardianship or adoption where possible to protect your parental rights.
  • Beneficiary Designations: Regularly update the beneficiaries on your retirement accounts, life insurance, and other assets.
  • Property Ownership: Consider joint tenancy arrangements with survivorship rights to ensure assets pass directly to partners.
  • Account registrations: Review account registrations for bank and investment accounts to make sure that if something happens to your spouse, the assets will flow to the people or person you prefer. Transfer on Death, Joint Tenancy, and in some states, Community Property are common areas people look to.

Taking these steps empowers peace of mind while laying the groundwork for long-term protection.

III. Estate Planning for LGBTQIA2S+ Families

Estate planning is critical for LGBTQIA2S+ individuals and families, particularly if marital rights and the benefits therein are in limbo. Without proper planning, assets could default to biological relatives, bypassing surviving partners or chosen family members.

  • Create a Will: See to it that your wishes are respected and disputes are minimized.
  • Establish Trusts: Trusts can help navigate probate and clarify your intentions.
  • Review Beneficiaries: Keep designations up-to-date, especially for accounts like 401(k)s or IRAs.
  • Power of Attorney: Consider assigning trusted individuals for financial and medical decisions.

These tools help empower your family by seeing to it that your family is protected and your legacy remains intact, even in states that may roll back marital rights.

IV. Advocating for Your Family’s Financial Rights

Understanding policy changes and how they impact you is crucial. Stay informed about local and national advocacy efforts. Connect with organizations that work to protect LGBTQIA2S+ rights in finance, including groups focusing on marriage equality, and those committed to forging legal precedent for the LGBTQIA2S+ community.  

V. Leveraging Historical Resilience

Our community has navigated financial and legal inequalities long before marriage equality became a reality. Strategies like co-parenting agreements, living wills, account registration types, and trust arrangements are part of our shared history of resilience. For younger generations, consider sharing your concerns with an older Millennial, Gen X, or Baby-Boomer who has been through tough times and can provide historical context and possible strategies. These strategies often remain as relevant and empowering today as they were in the past.

VI. Staying Resilient Amidst Uncertainty

The potential rollback of marriage equality has left many feeling an overwhelming mix of fear and uncertainty. But time and again, LGBTQIA2S+ families have proven their ability to adapt and thrive.

  • Focus on What You Can Control: Prioritize estate planning, updated beneficiary designations, and other immediate actions.
  • Lean on Community: Seek guidance from professionals and supportive networks.
  • Celebrate Progress: Acknowledge each small step as part of your resilience journey.  

Resilience doesn’t mean having all the answers—it means continuing to take steps forward, no matter how small, particularly in the face of uncertainty, fear, and adversity.  

Conclusion

While the potential rollback of marriage equality presents challenges, LGBTQIA2S+ families have long demonstrated resilience and creativity in navigating legal and financial uncertainties. With proactive planning, you can care for your loved ones and powerfully navigate your future.

Remember, you don’t have to face these challenges alone. By leaning into community and professional resources, you can take charge of your family’s financial well-being—without uprooting your life or losing connection to the people and places you love.

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Sources & Resources:
Aguilera, J. (2022, December 14). What Will Happen to Same-Sex Marriage Around the Country if “Obergefell” Falls. Time. Accessed 2025.01.09.
How Social Security Works For Married Same-Sex Couples. (n.d.). AARP. Accessed 2024.01.09.
Justia U.S. Supreme Court. (2015, June 26). Obergefell v. Hodges, 576 U.S. 644 (2015). Justia Law. Accessed 2024.01.09.
Tools for Preparing Wills and Trusts FIRST STEPS. (n.d.). Lambda Legal. Accessed 2024.01.09.
What LGBTQ+ marriage means for your finances. (n.d.). Investopedia. Accessed 2024.01.09.

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