Some Hindu Spiritualists believe that the divisions of gender between males and females remain unchanged after death. Much depends upon the conviction of the Soul about its sex. A man with a feminine disposition or a woman having a male disposition have to remain for a certain period of time in the neuter gender, in order to ponder over their preferences in an unbiased manner.
After death, the Souls retain their youthfulness and their mental state reverts to what they were in the prime of their life. The cause and effect principles ceases to have effect and this enables them to figure things out to the best of their abilities, in a focused manner.
Now coming back to those confused Souls, after the grace period in the neuter gender concludes, they have to select their preferred gender, male or female for their next life on earth.
Other than the Souls described above, very few Souls are interested in changing their sex for their next life. The physical and psychological sexual defects, the drawbacks and hindrances they experienced in their past life on earth, disappear after death.
The sexual preferences and abilities of the Soul after rebirth into the next life then depends upon the cause and effect or the action and reaction principle which govern it in that life.