[Insights Article] Wealth Planning: Navigating the Unique Challenges
In recent years, Hong Kong has seen notable advancements in LGBTQ+ rights, marked by significant legal rulings that offer recognition to same-sex couples. For instance, a same-sex couple can now apply for dependent visas if they are married or in a civil partnership outside of Hong Kong. Same-sex marriage have increased over the decade, according to a joint report by the University of Hong Kong, Chinese University of Hong Kong, and the University of North Carolina.
Despite these strides, challenges remain, particularly when it comes to wealth and financial planning. LGBTQ+ family members have to navigate not only their role in a traditional family structure but also deal with wealth planning, taxes and insurance for partners and children who may not be legally recognized.
There is a significant gap in wealth management services available to the community. Andrew Chan and Tony Chan, Partners at Lioner, elaborate on some of the most crucial topics here.
What are the key protection gaps that LGBTQ+ couples in Hong Kong face in securing comprehensive insurance coverage and financial planning?
- Insurance products in Hong Kong, such as life insurance and estate planning tools, are designed for married heterosexual couples. LGBTQ+ couples may face barriers in accessing the full suite of couple-based benefits and coverage options available.
- For the group in Hong Kong looking to start a family, insurance coverage for fertility treatments, adoption, and other family planning expenses may not be readily available or may carry exclusions under standard policies.
How should the group better plan for themselves and their beloved ones?
- Legal and financial matters must be sorted to safeguard loved ones, considering their families’ non-traditional nature. This includes designating power of attorney, creating advance directives, and ensuring that beneficiary designations accurately reflect their wishes.
- LGBTQ+ individuals need to carefully consider unique estate planning factors, such as the potential challenges from unsupportive or hostile family members. This may involve writing letters to unsupportive family members, carefully reviewing beneficiary designations, and regularly updating estate planning documents.
What role can philanthropy play in legacy planning for the group?
- Philanthropy can be integrated into these plans by establishing trusts that cater to both family needs and charitable goals. This approach offers flexibility for LGBTQ+ relationships and secures the family’s philanthropic goals, along with providing financial stability for their children.
Lioner is here to provide comprehensive financial planning for these families. Our integrated approach to insurance, trust and family office services allows us to provide bespoke solutions that safeguard wealth while fostering growth for generations to come.
We are dedicated to embracing inclusivity and empowering all of our clients and their loved ones, to achieve their long-term wealth planning goals while ensuring their overall financial well-being. Lioner is committed to creating customized solutions that address the unique needs of each individual and family with pride.
