Estate planning is important for everyone, but veterans and military families have special considerations. With benefits like VA pensions and military life insurance, plus frequent relocations and deployments, having a solid plan in place can offer peace of mind.
Here are some key tips for veterans and military families to create strong estate plans, avoid probate, and protect their loved ones.
Unique Military & Veteran-Specific Assets in Estate Planning
Military families often deal with unique assets that require special attention in an estate plan. These include VA benefits, pensions, and life insurance policies like SGLI (Servicemembers’ Group Life Insurance).
If you’re a veteran, you may qualify for a VA pension, disability benefits, or Dependency and Indemnity Compensation (DIC) for your surviving spouse. You may also have chosen to participate in the Survivor Benefit Plan (SBP), which provides income to your spouse or children if you pass away. These benefits don’t automatically transfer to heirs—so it’s important to name your beneficiaries and understand how these assets are handled.
What Veterans Need to Know When Creating a Will
Creating a will is one of the first steps in estate planning. Veterans should make sure their will names a trusted executor—someone who understands both the military lifestyle and North Carolina probate laws.
It’s also smart to clearly list any military-related benefits or burial wishes in your will. For example, if you want a military funeral or burial in a national cemetery, that should be written down.
Why Trusts Can Be A Smart Option for Military Families
Trusts can be a powerful way to avoid probate and manage your assets. A revocable living trust allows you to move assets into the trust during your lifetime. When you pass away, your assets can either be held in trust for named beneficiaries or go directly to your chosen heirs without court involvement.
Some families may also consider irrevocable trusts, which can help protect assets from taxes or long-term care costs. These trusts are harder to change, so it’s important to speak with an estate planning attorney before setting one up.
If you move often, as many military families do, a trust can also provide a steady plan that stays in place no matter where you’re stationed.
How Military Families Can Avoid Probate
Probate is the legal process where a court handles someone’s estate after death. It can take time and may involve court fees. Military families can use several strategies to avoid this process.
One of the easiest ways is to make sure your accounts and policies have named beneficiaries. Life insurance, retirement accounts, and even some bank accounts allow you to name a person who will receive the funds directly.
You can also use transfer-on-death (TOD) or payable-on-death (POD) designations on financial accounts and real estate in certain states. This helps your loved ones receive their inheritance faster and with less hassle.
Finally, joint ownership with rights of survivorship—like owning a home with your spouse—can also help skip probate.
Why Is it Important to Make the Right Designations?
Correctly naming beneficiaries on your accounts is just as important as writing a will or setting up a trust. Your beneficiary designations override what’s written in your will—so if they aren’t up to date, your assets might not go where you intended.
For example, if you forget to update your SGLI policy after a divorce or marriage, the money could still go to your former spouse. This can cause major problems for surviving family members.
Make sure to regularly check and update designations for:
- Life insurance policies (SGLI, VGLI, private plans)
- Thrift Savings Plan (TSP) and retirement accounts
- Bank accounts and brokerage accounts
- Survivor Benefit Plan (SBP) elections
- Any payable-on-death or transfer-on-death assets
Powers of Attorney & Health Care Documents
A complete estate plan includes more than just a will and/or trust. You’ll also want to create a durable power of attorney to name someone who can handle your finances if you area unable to act on your own behalf. Similarly, a health care power of attorney lets someone make medical decisions for you when you are unable to do so, and a HIPAA release gives them access to your medical information.
Military OneSource offers guidance and checklists to help you get these documents in place. Keeping them with your emergency paperwork is a smart step, especially before deployments or PCS moves.
Avoid DIY Solutions
While there are many online estate planning tools available, working with a legal professional (especially one familiar with military and veteran issues) can help avoid costly mistakes.
DIY planning tools can work in simple situations, but for families with complex needs or valuable assets, professional help is often worth the investment.
Why Work with an Estate Planning Lawyer?
An estate planning attorney can help you understand how your VA and federal benefits work with state laws. They’ll also make sure your documents meet North Carolina requirements and are updated if laws change.
Keep Your Plan Up to Date
Estate planning isn’t something you do once and forget. You should review your documents anytime you go through a major life change—like getting married or divorced, having a child, moving to a new state, or retiring from the military.
It’s also smart to do a quick check each year to confirm that your beneficiaries, powers of attorney, and asset titles are all correct. Keeping everything updated will make things much easier for your loved ones later on.
Charlotte Estate Planning Can Help Veterans & Military Families
By growing up in a military family, Attorney Ryan Stump understands that veterans and military families have special benefits and needs that should be carefully considered in an estate plan. By creating a strong will or trust, using probate-avoidance tools, and updating your plan regularly, you can protect your family’s future and make sure your wishes are honored.
If you’re ready to get started or want to update your existing plan, contact Charlotte Estate Planning or call 704-766-8836. We’re here to help North Carolina’s veterans and military families build secure, personalized estate plans.
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