Estate Planning for Military Families: Essential Documents to Protect Your Loved Ones
Estate planning isn’t just for the wealthy or elderly; it’s for anyone who doesn’t want to leave their family with a legal mess when they’re gone or unable to make decisions. Life changes, and your legal documents need to keep up. Outdated documents can lead to unintended consequences, such as an ex-spouse from 15 years ago being the beneficiary on a life insurance policy.
The Big 3: Will, Beneficiary Designations, and Powers of Attorney
To protect your loved ones and ensure your wishes are followed, you need three essential documents:
- A Will: This outlines who inherits your assets and who manages the distribution. Without a will, state law decides, which may not align with your wishes.
- Beneficiary Designations: These apply to life insurance, retirement accounts, and other financial assets. If your will and beneficiary form conflict, the beneficiary form takes precedence.
- Power of Attorney (POA): This gives someone authority to make financial and legal decisions on your behalf if you’re incapacitated. A separate health-care POA covers medical decisions.
Life Changes Require Document Updates
Major life events should trigger a review of your estate plan, including:
- Marriage or divorce: Update your will and beneficiaries immediately.
- New kids or grandkids: Update your will to include them and consider guardianship plans.
- Death of a loved one: Update your documents if a named beneficiary or executor dies.
- Major financial changes: Adjust your plan when buying a house, selling assets, or receiving an inheritance.
- Health issues: Review your POA and health-care directives after a serious diagnosis.
Resources for Military Families
One advantage of military service is access to free or low-cost legal assistance. You can get help with wills, POAs, and other estate documents through your base’s legal office. Additional resources include:
- JAG legal assistance: Free legal counseling for wills, POAs, and estate planning.
- U.S. Department of Veterans Affairs: Offers survivor benefits, burial benefits, and estate planning assistance.
- Military financial institutions/organizations: Provide estate planning guidance and checklists tailored to military families.
Estate planning protects your family from unnecessary stress and confusion. Create a will, keep beneficiary designations current, and establish a Power of Attorney. Update these documents as life changes, and you’ll thank yourself later.
