No matter the time of year, it is always an excellent opportunity for military members and their loved ones to consider setting up — or revising an existing — estate plan. Estate planning is for everyone, but due to the unique challenges that military families face, it is important to consider special estate planning issues that others do not. This is especially true when one or more family members are deployed overseas.
Beyond this, members of the military have access to unique benefits and resources. However, this can become complicated, and for this reason, it is essential to seek specialized help if you are a service member or are part of a military family.
Factors to Consider
Estate plans should be customized to each person’s particular circumstances. 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:
- You own real property and, if so, 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 a thrift savings plan;
- You plan to give to charity; and
- You are moving multiple times across states or to different countries.
Estate Planning Resources for Military Families
Estate planning is a crucial step for military families to ensure their financial security and peace of mind. By preparing essential estate planning documents, such as wills, trusts, healthcare directives, and more, these families can significantly reduce taxes, save money, and ensure that their final wishes are respected (among many other things).
Military families also have access to specialized estate planning resources. Let’s take a look at some of the estate planning benefits and resources military families have access to.
Life Insurance Policy
Life insurance is an integral part of an estate plan intended for those who are financially dependent upon you, especially if you are facing deployment. Active-duty service members have access to low-cost life insurance for themselves and their loved ones from Servicemembers’ Group Life Insurance (SGLI), while veterans may want to consider Veterans’ Group Life Insurance (VGLI).
In addition to these policies are Family Servicemembers Group Life Insurance (FSGLI), Service-Disabled Veterans Life Insurance (S-DVI), Veterans Affairs Life Insurance (VALife), and more. More information can be found on the Department of Veterans Affairs website.
When examining your life insurance policy options, please work with an experienced estate planning attorney like those at The Law Office of Raymond E. Brown to make sure that the beneficiary designation works the way you expect.
Wills
For military members, creating a will is an essential aspect of securing their family’s future. A last will is a legal document that outlines to whom and how you want your assets distributed at your death, including financial accounts, personal property, and more. It also allows you to name who will administer your estate and appoint legal guardians for minor children or special needs children.
On the other hand, a living will, aka an advanced medical directive, specifies preferences for medical treatments in situations where one cannot make decisions themselves. These documents grant a “health care proxy” or “agent” the authority to ensure that the individual’s wishes are honored in both health and estate matters.
Since each state has its own laws governing the validity and execution of these documents, it’s crucial for military personnel to comply with state law to avoid complications in probate court. By having these documents properly prepared and updated, military members can provide clear instructions and ease the burden on their families during challenging times.
Trusts
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.
When military service members create trusts, they help ensure that their assets are distributed according to their wishes with privacy and without the oversight of probate court. Trusts can help avoid probate, a time-consuming and often costly court process that can delay the time it takes to distribute assets to a designated beneficiary or beneficiaries.
Yet another 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. For military families seeking further guidance, Maryland trust attorney Raymond E. Brown can help you explore the many different trust options available and ensure tailored solutions to protect your financial future.
Military Power of Attorney
A military power of attorney is another important estate planning document granting someone the authority to act on behalf of a service member in various matters, especially during deployments or when the service member is unable to handle their own affairs personally.
Depending on the instructions reflected in the power of attorney, these documents can help ensure their financial decisions, medical decisions, or both are managed according to their wishes, even when they’re not physically present or are otherwise incapacitated.
Other Benefits for Survivors
- Survivor Benefit Plans (SBP): Pension-type plans in the form of an annuity that will pay your surviving spouse and children a monthly benefit at your death.
- VA Burial Benefits: The VA offers funeral and burial benefits to help family members of a deceased veteran pay for a gravesite in a national cemetery, a headstone or marker, the presentation of a burial flag, the rendering of military funeral honors, and more.
- 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, legal document, or insurance product, it is always a good idea to work with a qualified estate planning attorney to make sure any beneficiary designations work the way you expect and ensure the maximum benefit is provided to your surviving family members.
Why Military Service Members Need an Estate Planning Attorney
Members of the military often experience frequent moves, have access to several forms of government benefits after service, and can be subject to some significant tax rules. For these reasons and more, estate planning for military families is more complicated than most.
While the Judge Advocate General’s Corps (JAG) provides valuable legal assistance to military members and their families, collaborating with an estate planning attorney like Raymond E. Brown offers distinct advantages. Unlike the broader scope of services provided by the JAG, civilian estate planning attorneys have a more focused and comprehensive skill set when it comes to crafting estate plans for military families. Securing outside legal assistance from a skilled professional can maximize protection and peace of mind for you and your family’s financial future.
You can expect an estate planning professional like Raymond E. Brown to assist you in setting up the following:
- Powers of attorney for financial matters, as well as health care decisions (they are especially beneficial when a spouse is deployed);
- Advanced medical directives;
- Funeral and burial arrangements;
- Wills and living wills;
- Organ donation;
- Family care plans;
- Life insurance;
- Trusts;
- Estate taxes;
- Survivor benefits; and
- Estate administration and probate.
Call The Law Office of Raymond E. Brown for Experienced Military Estate Planning Services in Maryland
Active duty service members, veterans, and civilians alike can all benefit significantly from creating an estate plan. Such a plan can accomplish 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 many others.
Whether you’re in the Army, Marine Corps, Coast Guard, Air Force, or Navy, Maryland estate planning attorney Raymond E. Brown and his dedicated legal team at The Law Office of Raymond E. Brown can provide the legal assistance you need to create a comprehensive plan for your estate and ensure your loved ones are taken care of according to your wishes following your passing. Plus, we offer a 10% discount on our services to all active duty service members and veterans. Let us guide you through the best options available to you and your family.
To learn more about our legal services or to get to work on your estate plan, give us a call at (443) 554-9944 or reach out online today.
