Estate Planning & Benefits for Veterans & Military Families

Veterans and military families have unique estate planning needs, including access to specialized benefits and considerations that reflect their sacrifices and service.

Ensuring that military families have a solid estate plan not only protects loved ones but also maximizes the available benefits. Here, we’ll explore key aspects of veterans’ benefits, estate planning strategies for veterans, and considerations for military families.

Veterans and their families may qualify for several benefits that can significantly impact their estate planning process.

A few key benefits include:

1. VA Pension and Aid & Attendance Benefits

Veterans over 65 or those with disabilities may qualify for VA Pension benefits, which can provide additional monthly income. Aid & Attendance benefits offer even more financial support if the veteran requires long-term care assistance.

Estate plans for veterans should consider how to protect eligibility for these benefits, as certain assets and income can affect qualification.

2. Life Insurance Policies

The VA offers several life insurance options, including the Servicemembers’ Group Life Insurance (SGLI), Veterans’ Group Life Insurance (VGLI), and Family Servicemembers’ Group Life Insurance (FSGLI). Ensuring these policies are correctly set up in an estate plan can provide financial support to loved ones in the future.

3. Disability Compensation

Veterans who suffered injuries or illnesses during their service may be eligible for disability compensation.

This tax-free income can serve as an essential resource for both daily and future expenses, and it’s crucial to ensure that plans are made to protect this income for the veteran or family members.

4. Survivor Benefits

The Dependency and Indemnity Compensation (DIC) program offers financial assistance to surviving spouses and children of veterans who died in the line of duty or from service-related injuries. Estate plans should account for how these benefits will be managed and used.

Estate Planning Strategies for Veterans & Military Families

1. Asset Protection & Trust Planning

Veterans may want to create a trust to manage and protect their assets, which can be an effective way to plan for loved ones' futures while maintaining eligibility for specific benefits.

Special Needs Trusts are valuable for families with children or spouses with disabilities, allowing them to receive inheritance without jeopardizing government benefits.

2. Powers of Attorney & Medical Directives

For veterans and military members, establishing powers of attorney and medical directives ensures that a trusted individual can make financial and healthcare decisions on their behalf if they cannot do so.

This is particularly crucial in cases where veterans may have service-related disabilities affecting their decision-making abilities.

3. Updating Beneficiary Designations

Regularly reviewing and updating beneficiary designations on VA life insurance policies, pensions, and other assets is critical, especially for those with families who experience frequent changes due to deployments or relocations.

Keeping beneficiaries current will streamline the transfer of benefits to loved ones when needed.

4. Estate Tax Considerations

Military families often have unique tax situations, including certain federal and state exemptions.

Veterans’ estate plans can benefit from strategies that minimize estate and income tax exposure, ensuring more of their assets remain with their families.

Special Considerations for Military Families

Military families, particularly those with children, face unique circumstances that can impact estate planning:

1. Guardianship Provisions

For military families with young children, it’s essential to name guardians to care for the children should something happen to both parents.

This is especially vital for active-duty members who may be deployed or face dangerous situations.

2. Living Revocable Trusts for Portability

Military families often move frequently, and a living trust can provide more portability and flexibility than a traditional will, ensuring that assets are managed across state lines without needing to reestablish estate plans with each move.

3. Service-Specific Resources & Support Programs

Many branches of the military offer family support programs that can aid in estate planning and navigating available benefits.

Military legal assistance services often provide basic estate planning documents to service members at no cost, making it more accessible for families to prepare essential documents.

Why It’s Important to Start Estate Planning Early

Estate planning ensures veterans’ and military families’ assets and benefits are managed and distributed according to their wishes, providing peace of mind.

Starting early can:

• Protect eligibility for valuable benefits
• Ensure financial security for loved ones
• Help prevent legal disputes among family members
• Create a framework for future medical and financial decision-making

Military service comes with unique challenges, but veterans and their families can rely on resources and thoughtful planning to safeguard their legacy.

Working with our firm can make all the difference in creating a comprehensive plan that respects and honors their service and sacrifices.