Discrimination
Even with marriage equality, LGBTQ people still face discrimination in other areas. LGBTQ borrowers are more likely to be denied loan applications as a result of discrimination. Additionally, many LGBTQ people live in urban communities among like-minded people which results in a higher cost of living. Transgender people face an increased risk of unemployment as a result from discrimination. A 2015 study found that transgender individuals are three times more likely to be unemployed and twice as likely to be living in poverty.
Life Insurance
Generally, identifying as an LGBTQ person does not impact eligibility for life insurance. There are now life insurance companies that will provide coverage for those living with HIV/AIDS, which is a very important development. But for transgender applicants, there may be a question regarding gender because underwriters use this information to determine mortality rates with actuarial tables which have traditionally corresponded with one’s sex assigned at birth. While some companies continue to use this model, there are now others that will quote life insurance policies based on one's present gender identification.
Estate Planning
LGBTQ people also face estate planning issues. If a beneficiary in a future generation has needs related to their LGBTQ identity, this should be planned for and considered. If someone has a relationship with a minor who's thought of as their child but has not been legally adopted or is not legally their child, that needs to be made clear in their documents. If not, that person could fail to become a beneficiary.
In general, the definition of descendant is changing, even outside of the LGBTQ community. People are not necessarily married but still have kids. There are many different ways to create families. People may have a child with their partner but may not get married and may never have adopted a specific child, but the relationship is there. In that case the correct legal moves and documents can be crucial.
Gender-confirmation surgery is expensive. Adoption is expensive. A trust may provide for the classic standard distributions for health and education but may not contain a further definition. For example, what if a beneficiary hopes to adopt a child and the fees are $40,000? The question becomes whether the trust is permitted under its definitions to distribute for the purposes of those costs. Even if the trustee does make the distribution, it’s not unimaginable for another beneficiary to contest such distributions. For someone going through gender confirmation, the cost can be a challenge. It’s important to indicate what constitutes “health and medical” distributions. Another question may be that of funding for a surrogate pregnancy. The Tax Court has included gender confirmation surgery as a deduction, but the Tax Court has said that surgery that is cosmetic is not a deductible expense. However, a gift to help with adoption or other family planning costs is not considered health care.
Conclusion
Representing members of the LGBTQ community means being aware of the above issues. We’ve come a long way but still have a long way to go.