For members of the LGBTQ+ community, estate planning is more than just a financial or legal exercise—it’s a crucial step in protecting loved ones and ensuring that your wishes are honored. Despite progress in LGBTQ+ rights, North Carolina law does not always automatically recognize non-traditional family structures, making proactive estate planning essential.
Without a comprehensive estate plan, state intestacy laws dictate who inherits your assets, and medical or financial decisions could fall to biological relatives rather than your chosen family. Below are key legal tools to help LGBTQ+ individuals and couples secure their future.
Key Estate Planning Tools for LGBTQ+ Individuals and Couples in North Carolina
1. Wills and Trusts
Under North Carolina law, if you pass away without a will (“intestate”), the state distributes your assets based on a fixed formula, prioritizing legal spouses and blood relatives—potentially leaving an unmarried partner or close friends with nothing.
- A will allows you to name beneficiaries of your estate, ensuring assets go to your chosen loved ones rather than being determined by the state’s intestacy laws.
- A revocable living trust can be used to transfer assets smoothly to beneficiaries while avoiding the probate process. This is particularly useful for LGBTQ+ individuals who want privacy and efficiency in estate distribution.
2. Healthcare Directives & Powers of Attorney
Without legal documentation, North Carolina law defaults to next-of-kin decision-making, which may exclude a partner or chosen family member.
- A healthcare power of attorney allows you to appoint a trusted person to make medical decisions if you are incapacitated. This is especially important for LGBTQ+ individuals who want their partner to have legal authority.
- A living will (advance directive) outlines your end-of-life care preferences and ensures that medical professionals respect your choices.
- A durable financial power of attorney designates someone to handle financial matters on your behalf if you become unable to do so. Without this document, your partner may have to go through a court-appointed guardianship process to gain authority over your finances.
3. Beneficiary Designations
Assets like life insurance policies, retirement accounts, and payable-on-death bank accounts bypass probate and go directly to the named beneficiary. Under North Carolina law, these designations take precedence over a will, so it’s essential to keep them updated.
4. Guardianship for Children
For LGBTQ+ parents, legal guardianship is critical—especially if one parent is not the biological or adoptive parent.
- A standby guardianship designation can ensure that your child remains with the intended guardian if something happens to you.
- If only one parent has a legal relationship with the child, adoption by the non-biological parent provides added security.
5. Protecting Against Challenges from Unsupportive Family Members
Unfortunately, legal challenges from family members can arise, especially if they disapprove of an LGBTQ+ relationship.
- Including a “no-contest” clause in a will or trust can discourage legal disputes.
- Explicitly stating your wishes in estate documents and ensuring they are properly executed under North Carolina law strengthens legal standing.
Take Control of Your Future
Estate planning is essential for LGBTQ+ individuals and couples in North Carolina to protect their rights, relationships, and assets. Whether through wills, trusts, healthcare directives, beneficiary designations, or guardianship designations, a well-prepared plan ensures that your loved ones are cared for according to your wishes.
To create a legally sound estate plan tailored to your needs, consult with an estate planning attorney who understands the unique challenges faced by the LGBTQ+ community in North Carolina.
If you or somebody you know is in need of estate planning tools, our team at Modern Legal is here to help.
Please note: these educational materials are based on North Carolina and South Carolina law where my legal practice is based. While the insights may have wide applicability, readers should consult with an attorney regarding the specific laws in their state or country.
Family is at the heart of everything I do, both personally and professionally. As a Family Law Attorney, I combine my passion for helping others with my unique journey—from growing up as the eldest child in a single-parent household to becoming the first attorney in my family. My experiences shaped my dedication to advocating for families in their most critical moments. Whether you’re building, protecting, or securing your family’s future, I’m here to help you find meaningful resolutions tailored to your needs.
