Why advisors need to consider the unique financial challenges of LGBTQ clients.

Original article by:

Deanne Gage

The Globe & Mail

June 27, 2024

📰 Read the ORIGINAL ARTICLE here.

I spoke with The Globe and Mail about how financial advisors can better serve LGBTQ clients and the planning issues that matter most to them. Here are the highlights and my contributions.

Key Takeaways

• More than one million Canadians identify as LGBTQ, and many feel underserved by the financial industry.

• Inclusive language, such as saying "spouse" instead of assuming a gender, and simply listening more can help clients feel comfortable.

• Trans clients may delay wills or powers of attorney until a legal name or gender change, but waiting can leave them exposed.

• Plans may need to account for larger age gaps between partners, family-building costs like IVF or adoption, and the higher cost of city living.

• Estate planning is especially important for common-law couples, since property and decision-making rights for a surviving partner vary by province.

My Perspective

About a quarter of my clients identify as LGBTQ, and every one of them reached out to me directly after learning that I identify as a queer woman who does financial planning for our community.

"I haven't had to prospect for queer clients. So, that's telling me these Canadians are looking for representation."

Many of my LGBTQ clients experienced stigma when they met with previous advisors. Small choices make a big difference: assuming a married woman has a husband rather than a wife can shut down the conversation, while using the word "spouse" puts people at ease. I also factor in costs that are common for my clients, such as IVF, fostering or adoption, and the reality that living in a larger, more accepting city often isn't negotiable, even though it's more expensive.

"They want that sense of empathy from the professional they're working with."

Estate planning is critical. Many queer couples live common-law rather than married, and depending on the province, a family that doesn't respect the relationship could override a surviving partner if there's no will or power of attorney in place. I always encourage my clients to name beneficiaries on every registered account and insurance policy so those assets go directly to the people they choose.

Originally published in The Globe and Mail by Deanne Gage on June 27, 2024. Use the link at the top of this post to read the full article.