Five estate planning tips for the LGBTQ+ community
Protect yourself and your loved ones with an estate plan that's tailored to the legacy you want to leave.
Jun. 13, 2022
4-minute read
Don't let the term “estate” intimidate you. If you have any assets at all, an estate plan will help ensure they go to the people or places you care about the most. If you’re unable to make decisions because of a serious medical issue, an estate plan can outline who has the right to make decisions on your behalf. If you have children, an estate plan says who their guardian will be in case something happens to you.
While estate planning is essential for everyone, it can be especially important for members of the LGBTQ+ community. For example, you may be concerned about interference from a family member who doesn't support your identity or recognize your relationship with your partner. There may be additional considerations for parents of non-biological children.
Here's what to keep in mind:
1. Be clear about your wishes with a will
Think of your will as a blueprint for what should happen to your assets when you die and who should be the guardian of your children, or pets, if you have them. It's one of the most important pieces of your estate plan and should be kept up-to-date as your life changes.
A recent CIBC poll shows only 39 per cent of LGBTQ+ Canadians have a written legal will. That’s well below the Canadian average of 47 per cent. If you don't have a will, provincial law decides what happens to your assets and who will have custody of your children. This may be a decision that’s not in line with your values.
2. Choose an advocate to speak for you
If you couldn't speak for yourself, who would you trust to make financial decisions for you? As part of your estate plan, consider naming that person — or people — in a power of attorney (POA). This is a legal document that gives someone the right to make decisions on your behalf about your money and property if you become incapacitated due to illness or injury.
There's also a separate POA for personal care that allows someone to make decisions about things like medical treatments and housing if you’re not able to make those choices for yourself. If you're a member of the transgender community, for example, it's particularly important to choose someone who embraces your identity and can advocate for you.
3. Know where you stand as a couple
According to the last Canadian census, about one-third of same-sex couples are married, while the majority are in a common-law relationship. Whether you and your partner are married or common-law partners may not make any difference in your day-to-day life, but it could impact how your estate is divided.
For example, let's say you're in a common-law relationship and you don't have a will. In some provinces, your partner would be legally entitled to a share of your estate. In others, your partner would have no entitlement, and your children, if you had them, would receive all of your assets.
Having a will and knowing how your province legally recognizes marriage and common-law relationships can help you make sure your estate is passed on according to your wishes.
4. Make a plan to take care of the kids
For some LGBTQ+ couples with children, one partner may be the biological parent, while the other may or may not be considered a legal guardian.
For example, in Quebec, the only way two men can be legally recognized as the parents of a child is through adoption. However, in Ontario, same-sex parents who use assisted reproduction no longer need to adopt their own children to be legally recognized as a parent.
In the event of a death or serious illness, keep your family together by listing both you and your partner as your child’s legal guardian.
5. Estate planning isn't just for couples or parents
Even if you don't have a partner or spouse, children or pets, you likely have people or charities you’d like to leave your assets to.
If you don't have a will in place, the provincial courts will decide what will happen to your estate. So, if you want to leave your jewellery to a friend or donate some of your savings to a cause that's important to you, don't leave it up to chance — put it in your will.
Creating a will and choosing a POA are decisions you should feel comfortable with. Your CIBC advisor can assemble a team of experts to help you get started. A qualified legal professional can also help you understand the implications of the decisions you make around your estate plan.
Need some financial advice?
Book a chat with one of our advisors. They can help set you up for success, today and into the future.
