Estate Planning Considerations for Military Families
Military families face unique estate planning challenges that most civilian families do not. This is especially true when one or more family members are deployed overseas. In addition, members of the military have access to specialized benefits and resources that must be carefully coordinated as part of an effective estate plan. Because of this added complexity, military families often benefit from working with an attorney experienced in military estate planning.
Whether you are just beginning your military service or have served for many years, the following factors are especially important to consider when creating or updating your estate plan:
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Ownership of real property, particularly if property is located in multiple states
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Marriage or remarriage
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Minor children or children with special needs
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Retirement savings such as 401(k) plans, IRAs, or Thrift Savings Plans
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Frequent relocations across state lines or international assignments
Estate Planning Tools and Benefits for Military Families
Military service members and their families have access to several important benefits that can play a key role in estate planning.
Life Insurance
Life insurance is a critical component of an estate plan, especially for those who have spouses, children, or others who depend on them financially. Properly structured life insurance can provide essential financial stability for loved ones in the event of an unexpected loss.
Wills
A will is a foundational estate planning document that outlines how your property should be distributed at your death. It also allows you to name a personal representative to administer your estate and designate guardians for minor children or children with special needs.
Trusts
A trust is a separate legal entity that can hold property and assets for the benefit of one or more individuals or organizations. Like a will, a trust allows you to control how and when your assets are distributed. Unlike a will, a trust can also provide instructions for managing assets if you become incapacitated. For many families, a trust-centered estate plan offers greater flexibility and protection, though a will may be sufficient in some situations.
Survivor Benefits
Military families may also qualify for survivor benefits, including:
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Survivor Benefit Plans (SBP): Pension-style annuities that provide monthly income to surviving spouses and children.
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Dependency and Indemnity Compensation (DIC): Monthly benefits paid to eligible survivors of service members or veterans who die on active duty, from a service-related illness or injury, or who were totally disabled due to a service-connected condition.
Why Military Estate Planning Is More Complex
Military families often experience frequent relocations, qualify for unique government benefits, and may be subject to specialized tax rules. These factors make estate planning for military families more complex than for most civilians. A carefully designed plan helps ensure that your wishes are honored and that your loved ones are protected no matter where duty takes you.
We are here to guide you through the estate planning options best suited to your military service and your family’s needs.
