It is a poignant reminder of the immense sacrifices made by our armed forces and their families. Military families, while unique in many aspects, share the same estate planning needs as civilians, albeit with added complexities. Frequent relocations, unique tax rules, and the ever-present risk of deployment necessitate careful and thorough estate planning. Here at the Law Office of David Standridge, we recognize these challenges and are committed to providing tailored estate-planning solutions to honor the service of military families.
The Impact of Military Life on Estate Planning
The distinct lifestyle of service members often poses challenges in creating and maintaining an estate plan. Understanding these unique needs is essential for providing effective support.
Government Benefits and Limitations
Active-duty military members have access to estate planning resources through the Judge Advocate General (JAG) office. However, these resources often extend only to basic wills, lacking in areas such as asset protection, trust-based planning, and legacy planning. This can be particularly problematic for blended families or those with minor beneficiaries or special needs.
Military personnel also have access to Servicemembers Group Life Insurance (SGLI), offering coverage up to $400,000. Despite this benefit, many service members remain underinsured, especially those with dependents. Survivor benefits, such as the Survivor Benefit Plan (SBP) and Dependency and Indemnity Compensation (DIC), provide additional support but may not be sufficient for all needs.
Frequent Relocations and Financial Challenges
Frequent moves are a hallmark of military life, often occurring every two to three years. This constant relocation can disrupt financial stability, particularly if a family owns a home they must sell or rent. Additionally, the transient nature of military life can make it difficult for families to establish long-term relationships with professional services, including estate planning attorneys.
Despite potential financial constraints, it’s crucial for military families to have comprehensive estate plans. These plans are essential for protecting their futures and those of their dependents, regardless of income or asset levels.
Strategies for Supporting Military Families
The Department of Defense offers a Military Family Readiness System, encompassing various programs and services beneficial to military families, including support for new parents, family life education, relocation assistance, spousal education and career services, deployment assistance, financial counseling, domestic abuse prevention, and youth activities. Making families aware of these resources is a crucial first step.
Collaborating with Financial Advisors
Estate planning attorneys should collaborate with financial advisors to ensure that military clients have adequate life insurance and financial protection. This involves assessing the sufficiency of SGLI coverage and addressing any gaps. Working together with financial advisors can provide a holistic view of the client’s financial situation, encompassing estate planning, retirement planning, life insurance, and charitable giving.
Ensuring Deployment Readiness
Preparing for deployment involves several key steps, including reviewing life insurance, setting up joint bank accounts, locating important documents, arranging automatic bill payments, updating beneficiaries, and identifying guardians for minor children. Additionally, military members should prepare a letter of instruction detailing notifications, funeral instructions, immediate financial matters, document locations, and debts.
Incapacity planning is also crucial but often overlooked. Comprehensive plans should include powers of attorney and guardianship documents to provide extra support.
Updating Estate Plans
Even without impending deployment, moving to a new state often necessitates a review of existing estate plans. Changes in state laws, marital status, or the birth or adoption of a child can all impact estate plans. Military families need basic estate planning education to understand these implications.
Providing Post-Death Support
Military clients may worry about how their affairs will be managed if they are injured or killed during deployment. Survivors may need to navigate the probate process and secure benefits such as burial allowances and survivor benefits. Offering guidance and support during these times is vital.
Enhancing Outreach to Military Families
Military members and their families make significant sacrifices, yet they often lack comprehensive estate plans. To honor their service, we can offer exceptional estate planning services. Consider providing discounts or pro bono basic information and guidance. Hosting free seminars at local veterans’ and service members’ organizations can raise awareness about estate planning needs and available services.
At the Law Office of David Standridge, we are dedicated to serving those who serve our country. By addressing the unique needs of military families, we can help ensure their futures are secure.
For more information or to schedule a consultation, please contact us at 941-770-3241.