Estate planning is an essential process for every family, but for military families, it comes with unique challenges and considerations. Frequent relocations, extended deployments, and military-specific benefits like the Survivor Benefit Plan (SBP) create an added layer of complexity. Proper estate planning ensures financial security, protects your loved ones, and provides peace of mind no matter where military life takes you.
This guide will outline actionable estate planning steps tailored to military families. With the right strategies, guided by an experienced local attorney, you can safeguard your family’s future while addressing the distinctive aspects of military life.
Why Estate Planning Matters for Military Families
Military families are uniquely mobile, often required to move due to Permanent Change of Station (PCS) orders or face long periods of separation during deployments. These circumstances make it critical to have financial and legal plans in place. Without proper estate planning, families may face unnecessary legal hurdles during emergencies, adding stress to emotionally taxing situations.
Additionally, military personnel and their families have access to specific benefits through programs like the SBP, Thrift Savings Plan (TSP), and VA benefits. However, leveraging these benefits effectively requires intentional, proactive planning.
The Risk of Delaying Estate Planning
Many military families put off estate planning because it feels overwhelming or unnecessary for young and healthy service members. However, life is unpredictable, and failing to prepare can leave your family vulnerable. For instance, untreated medical emergencies or unexpected deaths can lead to lengthy legal battles or financial hardships. Estate planning ensures that your wishes are honored and your loved ones are cared for no matter what happens.
Essential Estate Planning Tools for Military Families
A solid estate plan includes several legal documents and strategies that guarantee your interests are protected. Here’s a rundown of key elements:
Wills
A will is the foundation of any estate plan. It allows you to outline how your assets—such as savings, real estate, vehicles, or personal property—should be distributed after your death.
For military families in North Carolina, unique considerations often include naming a guardian for minor children in case both parents are deployed or incapacitated. An experienced attorney can help ensure that these provisions comply with state laws and address the complexities of your family’s situation.
Powers of Attorney (POA)
Frequent deployments make Powers of Attorney critical for military families. A POA grants a trusted person legal authority to take care of financial, legal, or medical matters in your absence.
- General POA gives broad authority over financial and legal matters.
- Limited/Special POA only applies to specific tasks, such as selling a home or managing investments.
- Health Care POA allows someone to make medical decisions on your behalf.
Having these documents ensures your affairs can be handled seamlessly, even if you’re halfway across the world.
Trusts
A trust can be a powerful tool to protect your assets and simplify their distribution. For military families, trusts offer several advantages, including avoiding probate, safeguarding assets for minor children, and providing clear instructions on how benefits or savings should be managed.
One example is a revocable living trust, which allows you to control your assets during your lifetime while specifying how they should be distributed after your death. Setting up a trust is especially beneficial for families in North Carolina, where state-specific regulations could impact your estate.
4. Beneficiary Designations
Many military benefits, such as SBP and TSP, come with beneficiary designations. It’s crucial to keep these updated to ensure that the right individuals receive the benefits. Failing to update designations—especially after significant life events like marriage, divorce, or childbirth—can lead to unintended outcomes.
Military-Specific Considerations
The military lifestyle comes with unique risks and benefits that must be considered in estate planning. Here are a few military-related aspects to factor into your planning:
- Survivor Benefit Plan (SBP): This annuity provides ongoing income to your spouse and, in some cases, children. Ensure your SBP elections align with your broader estate goals.
- Deployment Readiness: Prepare for deployments by having updated wills, POAs, and emergency plans in place.
- Base-Specific Legal Assistance: While legal assistance offices on military bases provide basic estate planning services, their scope may be limited. A private attorney offers the personalized attention and depth of expertise that many military families need.
The Importance of Working with a Knowledgeable Attorney
Military families benefit greatly from working with an attorney who understands both state-specific laws and military-specific considerations. For example, North Carolina has its own rules governing estate distribution, guardianship, and probate processes. Navigating these laws without professional guidance can lead to costly mistakes.
At Lanier Fountain & Ceruzzi, our team has extensive experience helping military families create customized estate plans that account for all the complexities of military life. We take the time to listen to your family’s unique needs and craft strategies that protect your legacy and loved ones. Contact us today by filling out our contact form or calling our firm at 910-939-3585 for tailored estate planning.