Estate Planning for Military Families: Are You Protected? (UPDATED: August 2019)
No matter the time of year, it is always a good opportunity for members of the military and their loved ones to consider setting up — or revising an existing —estate plan. Military families need to consider special estate-planning issues that others do not. This is particularly true when one or more family members are deployed overseas. Beyond this, members of the military have access to special benefits and resources. This can become complicated and, for this reason, it is important to seek special help form a professional who truly understands the intricacies of estate planning for military families.
Whether you are just starting your service in the military or have been serving for some time, consider the following common factors that may be important in your estate planning.
Estate Planning for Military Families: 6 Factors to Consider
Everyone’s estate plan should be customized to the person’s particular circumstances. Some factors that should be considered include whether:
- You own real property and, if so, if the real estate is located in different states;
- You are married;
- You have minor children, or children with special needs;
- You have money set aside in 401(k), IRAs, or thrift savings plans;
- You plan to give to charity; and
- You are moving multiple times across states or to different countries.
Necessities in Estate Planning for Military Families
There are many benefits offered to military families that can help with estate planning. These include:
An important part of estate planning for military personnel, life insurance is intended for those who are financially dependent upon you. Life insurance is especially important if a member of the military is heading out to a combat zone. Active-duty members have access to low-cost life insurance for themselves and loved ones from Service Members’ Life Insurance Group. More information can be found on the Department of Veterans Affairs website. When examining your life insurance, work with McDonald Law Firm to make sure that the beneficiary designation works the way you expect it to.
Wills and Trusts
Last will and testament to whom and how you want your property distributed, names who will administer your estate and specifies who will care for a minor or special needs child. A trust, on the other hand, is a separate legal entity that can hold property and assets for the benefit of one or more people or entities. For most families, a trust-centered estate plan is a better fit, but a will can work for some families.
Other benefits for survivors
Survivor benefit plans (SBP) are pension-type plans in the form of an annuity that will pay your surviving spouse and children a monthly benefit. Likewise, dependency and indemnity compensation (D&IC) provides a monthly benefit to eligible survivors of service members or veterans (1) who die while on active duty, (2) whose death is due to a service-related disease or injury or (3) who are receiving or entitled to receive VA compensation for service-related disability and are totally disabled. When you are examining any financial services or insurance product, it’s a good idea to work with McDonald Law Firm, LLC to make sure any beneficiary designations work the way you expect and provide the maximum benefit to your family.
Effective Estate Planning for Military Families Requires Special Help
Members of the military often experience frequent moves, have access to lots of government benefits after service, and can be subject to some unusual tax rules. For these reasons, estate planning for military families is more complicated than most.
You can expect an estate planning attorney to assist you with setting up the following:
- Powers of attorney for limited and general financial matters, as well as health care decisions (there are very helpful when a spouse is deployed);
- Funeral and burial arrangements;
- Wills and living wills;
- Organ donation;
- Family care plans;
- Life insurance;
- Estate taxes;
- Survivor benefits; and
- Estate administration and/or probate.
Estate planning for military (and non-military) families has multiple objectives: to provide for your family’s financial security, ensure your property is preserved and passed on to your beneficiaries, and determine who will manage your assets upon your death, among others. At McDonald Law firm, we are here to guide you through the best options available to you and your family. Give Andre O. McDonald, an experienced Howard County estate planning attorney, a call today at (443) 741-1088 to schedule a consultation to discuss your options.
DISCLAIMER: THE INFORMATION POSTED ON THIS BLOG IS INTENDED FOR EDUCATIONAL PURPOSES ONLY AND IS NOT INTENDED TO CONVEY LEGAL ADVICE.