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, so it is important to seek specialized help if you are a military family. 

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.

Factors to Consider

Estate plans should be customized to each person's particular circumstances. In your estate planning, you should consider whether:

• You own real property and, if so, if it 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.

Estate Planning Necessities

There are many benefits offered to military families that can help with estate planning. These include:

Life insurance - Life insurance is an important part of an estate plan intended for those who are financially dependent upon you, especially if you are facing deployment. Active-duty members have access to low-cost life insurance for themselves and their loved ones from Service Members' Life Insurance Group. More information can be found on the Department of Veterans Affairs website. When reviewing your life insurance, work with us to ensure the beneficiary designation works as you expect.

Will - A will is a crucial document outlining to whom and how you want your property distributed at your death. It also allows you to name who will administer your estate and specify who will care for a minor or special needs children. 

Trust - A trust is a separate legal entity that can hold property and assets for the benefit of one or more people or entities. Similar to a will, a trust allows you to dictate who will receive your property at your death and how it is to be administered. The added benefit of a trust is that it also provides instructions on how to handle the assets during any period of your incapacity. 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 at your death. Likewise, dependency and indemnity compensation (D&IC) provides a monthly benefit to eligible survivors of servicemembers 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 a service-related disability and are totally disabled. When you are examining any financial service or insurance product, it's a good idea to work with an estate planning attorney to make sure any beneficiary designations work the way you expect and provide the maximum benefit to your family.

You Need Special Help

Members of the military often experience frequent moves, have access to several forms 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 professional to assist you in setting up the following:

• Powers of attorney for financial matters, as well as health care decisions (they are very helpful when a spouse is deployed);

• Funeral and burial arrangements;

• Wills and living wills;

• Organ donation;

• Family care plans;

• Life insurance;

• Trusts;

• Estate taxes;

• Survivor benefits; and

• Estate administration and/or probate.

An estate plan 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. 

Being Deployed? Here's What You Need to Do

You just received your orders, and you will be deployed shortly. No matter the time frame, there is still time to make sure your affairs are in order.

Review or prepare a Family Care Plan

Regardless of the branch of the military in which you are serving, you may be required to complete a Family Care Plan. It is usually required for single parents, dual service member couples with dependents, those who are married with custody or joint custody of a child whose non-custodial biological or adoptive parent is not the current spouse of the service member, or those who otherwise bear sole responsibility for the care of children under the age of 19 or for others unable to care for themselves in the absence of the service member, or those who are primarily responsible for a dependent family member. 

This plan includes written instructions for your loved ones on managing day-to-day activities and any necessary legal documents. It will also document who will care for your family members when you are away and unable to, and that the specified caregiver has agreed to do so.

Review or have estate planning documents prepared

To ensure your wishes are carried out, they must be written down. This can be accomplished through a will or a trust. If you already have a will, it is important to ensure it still reflects your wishes. If you have gotten married or had children since the will was first prepared, it is important that the document be updated. Also, if you have gotten married or had a child since you first had the will prepared, you may want to consider having a trust prepared. While a will and a trust both distribute your assets according to your wishes, a trust offers the added benefit of allowing administration without court involvement and asset protection for the beneficiaries.

Review or complete beneficiary designations

As a service member, you may have access to life insurance policies or other survivor benefits. It is important that you review these policies to ensure the recipient is the person you would like to receive the benefits. As mentioned before, this is especially important if you have recently gotten married or had children.

Assess your life insurance needs

When planning for your family's financial security, it is important to assess their needs. According to the U.S. Department of Veterans Affairs, Servicemembers' Group Life Insurance coverage is available in $50,000 increments, up to a maximum of $400,000. However, if you need more than this, it is important that you research your other options.

We are Here to Help

You have made a heroic decision to serve your country, and we are here to serve you. If you have any questions about starting or reviewing your estate plans, please give us a call. We are here to guide you through the best options available to you and your family. 

Contact Hartmann Law Today

If you have questions about estate planning for military families, contact our office to speak to an estate planning attorney.

Take steps to start your Life and Legacy planning today!  Take action to ensure your voice is heard when you are unable to speak for yourself.  Make the decision to protect yourself, your loved ones, your business, your property.   

Schedule a call today with Hartmann Law.

Hartmann Law provides Life and Legacy plans ready for today with an eye on the future.

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