The Lesbian, Gay, Bisexual and Transgender investor has unique needs when it comes to establishing wills and trusts, but fewer LGBT investors have such plans in place than non-LGBT investors, according to Spectrem research.
A Spectrem – Advising the Affluent LGBT Investor - shows that less than two-thirds of LGBT investors have a living will, or will and testament. Sixty-three percent have a will and testament, but only 54 percent have a living will.
The percentages do rise based on wealth, but they never reach the numbers for non-LGBT investors. For instance, while 56 percent of Mass Affluent LGBT investors (with a net worth between $100,000 and $1 million Not Including Primary Residence) have a will in place, 70 percent of non-LGBT Mass Affluent investors already have a will set. The difference is greater for Ultra High Net Worth investors (with a net worth of between $5 million and $25 million NIPR), where 72 percent of LGBT investors have a will and 91 percent of non-LGBT investors are set with a will.
The same differences exists in the creation of trusts. Only 8 percent of LGBT investors have an irrevocable trust, and 16 percent have an irrevocable trust set. While 18 percent of Millionaire LGBT investors (with a net worth between $1 million and $5 million NIPR) have a revocable trust, 27 percent of non-LGBT Millionaire investors are set with a trust.
Only one-third of all LGBT investors say their financial advisor has discussed with them the benefits of wills and trusts as it relates to their LGBT status. But 65 percent of LGBT investors say they would choose an advisor based on his familiarity with the unique financial situation of the LGBT investor as it regards to estate planning, wills and trusts.
Such familiarity with LGBT financial needs is considered the greatest concern among LGBT investors in regards to new advisors, far more than having an advisor who is a member of the LGBT community, or that the advisor is considered an advocate of the LGBT community.
Overall, only 43 percent of LGBT investors feel their advisor understands the issue they face as a member of the LGBT community.