Honoring Your Sacrifice: Estate Planning Essentials for Military Families

Every year on November 11, the country takes a moment to recognize the bravery and sacrifices of those who have served in the Armed Forces. Beyond the ceremonies and flags, Veteran’s Day provides military families with a significant chance to ponder an important question: Is your family genuinely safeguarded if something were to happen to you?

If you have served or belong to a military family, your planning requirements extend far beyond typical estate documents. From managing military benefits to preparing for deployment, your estate plan must function in ways that most civilian plans do not take into account.

In this article, you will discover why military families require specialized estate planning, how to safeguard your military benefits, and what actions to take to ensure your plan remains effective during service, through retirement, and beyond.

Why Military Families Require a Distinct Type of Estate Plan

Military families encounter unique obstacles when it comes to safeguarding their loved ones. You may have access to benefits such as Service Members’ Group Life Insurance (SGLI), Dependency and Indemnity Compensation (DIC), and Survivor Benefit Plan (SBP) payments. These are all essential safety nets that necessitate careful coordination.

Without proper coordination, even the best-intentioned plans can fall short. For instance, if your SGLI beneficiary form lists someone you designated years ago, your life insurance could end up with the wrong individual, leading to confusion and disputes among your loved ones. Additionally, if you named a minor child as your SGLI beneficiary, a court will need to appoint someone to manage those funds until your child reaches adulthood, which can cost your family time, money, and stress. Furthermore, your child will receive all the funds at 18, outright, with no restrictions and no strategy for their future security.

Frequent relocations introduce another layer of complexity. Estate planning laws vary by state, meaning a plan established while you were stationed in California might not function as intended after a move to Virginia or overseas. Without regular reviews, your plan could become outdated or even invalid.

Deployment comes with its own set of risks. When you’re stationed overseas or in dangerous situations, it’s vital that your family has immediate authority to make financial and healthcare decisions. Standard powers of attorney often lack the precise language needed for military systems, which can leave your spouse or designated decision-maker unable to access essential benefits or accounts at critical moments. These are not the kinds of details you want your loved ones to be sorting out during a crisis.

How to Safeguard and Enhance Your Military Benefits

The benefits you’ve earned through your service are a crucial component of your family’s long-term security, but they must be effectively managed within your estate plan.

Begin by examining all beneficiary designations. Your SGLI, Thrift Savings Plan (TSP), and retirement accounts each have forms that take precedence over your will or trust. If these aren’t current, your benefits could end up going to someone you didn’t intend, like an ex-spouse, while your current spouse and children receive nothing.

If you’re retired, pay special attention to the Survivor Benefit Plan. This plan allows you to provide ongoing income for your spouse or dependents after your passing, but its costs and coverage should be assessed alongside your life insurance and other assets to ensure everything is balanced and efficient.

Your DD-214 and other service records are also critical. Without these documents, your family may experience delays in accessing VA benefits, military burial honors, or other entitlements. We assist clients in organizing these vital documents as part of our Life & Legacy Planning process, which includes an inventory of assets, service-related information, and benefit access details. This organization is essential. Otherwise, your loved ones may struggle to act swiftly and confidently when the time comes.

Lastly, make sure to incorporate your burial preferences into your plan. Veterans have the right to be buried in national cemeteries, receive headstones or markers, burial flags, and Presidential Memorial Certificates at no charge – but it’s essential that your family knows how to access these benefits. Your plan should explicitly state whether you desire military honors, which cemetery you would like, and who should be informed.

When these components are established, your benefits become more than just a concept. They actively support your loved ones when they need it the most.

Creating a Comprehensive Plan for Every Phase of Service

Military life is constantly evolving. This is why it’s vital that your plan is effective not only after your passing but also during active duty, deployments, retirement, and times of incapacity. Thus, your plan should also encompass:

A durable power of attorney customized for you and your family, ensuring that your spouse or trusted representative can handle financial and legal matters – including communication with the Defense Finance and Accounting Service (DFAS), VA, and Tricare – without any court delays. Standard forms often fall short, which is why when you collaborate with us, we’ll develop personalized powers of attorney tailored to your needs and military service.

Healthcare directives also require careful consideration. Your healthcare proxy should be valid in both civilian and military hospitals, with provisions that allow your designated advocate to work directly with military medical staff. Whether you encounter an injury during service or face a serious illness later in life, these directives guarantee that your preferences are clearly understood and honored.

Don’t forget about personal property and memorabilia. Uniforms, medals, and service keepsakes carry significant sentimental and historical importance. By documenting these items and the narratives behind them, you ensure they are preserved for future generations and managed according to your desires.

Most importantly, you deserve a reliable advisor who truly understands you – someone who remains connected with you and your family during deployments, relocations, and retirement. Unlike traditional lawyers who simply draft documents and move on, we are committed to staying with you, regularly reviewing and updating your plan to ensure it adapts as your life changes.

Effective planning is more than just paperwork. It’s about building a relationship.

Honoring Your Sacrifice and Your Family’s

You deserve to have someone in your corner who supports you, and your loved ones feel the same way. That’s why Life & Legacy Planning extends beyond just creating legal documents. We will ensure your family has the clarity, guidance, and support they need, whether you are deployed, retired, or have passed on.

When we work together to create your Life & Legacy Plan, your loved ones will be informed about:

● Where to locate essential documents

● How to access accounts and military benefits

● Who to reach out to first for assistance

● And what actions to take without confusion or delay

When the time comes, your family won’t have to navigate the VA claims process or legal system alone; they will have someone who already understands them and their story.

Your Life & Legacy Plan will embody not only your financial desires but also your values, stories, and service traditions, ensuring your legacy continues to impact the lives of those you cherish.

This Veteran’s Day, honor your service and your family’s sacrifices by taking steps to protect the ones you love the most.

📞 Schedule your free 15-minute discovery call today to make sure your commitment to our country results in lasting security for your loved ones.

Schedule a complimentary 15-minute consultation to learn more.

This article is a service of Kristen Wong of Seasons Estate Planning, APC, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session™.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.