The process of estate planning can feel overwhelming, but with some research and careful thought, it can become a powerful way to protect what matters most. For servicemembers and Veterans, the process often involves additional considerations beyond those faced by civilians, making thoughtful planning even more important.
Not sure where or how to get started? We’ve outlined the essentials below, from key documents to military-specific benefits, so you better understand what to prioritize and gain a clearer path to building a plan that supports your goals and your loved ones.
Military life often comes with uncertainty, including deployments, frequent relocations, and increased risk exposure. Having an estate plan in place helps ensure that your wishes are honored, no matter what circumstances arise.
Estate planning helps protect your dependents by making important decisions ahead of time. During those early difficult moments without you, your family won’t have to guess your intentions or navigate complex legal processes on their own. Instead, your estate plan will provide guidance that reduces stress and confusion.
Without a plan, your estate may go through lengthy legal proceedings, which could potentially delay access to assets or result in outcomes that don’t align with your wishes. Estate planning helps you avoid these complications while protecting your loved ones.
Having a plan in place ultimately provides peace of mind for you and your family. Whether you’re single, married, or raising children, it creates a sense of stability in an unpredictable environment.
Estate planning is the process of organizing your assets, documents, and decisions so they’re handled according to your wishes. While commonly associated with the wealthy, anyone who wants to protect their finances, family, or future decisions may benefit from having a plan.
Your estate plan typically includes legal documents, financial accounts, insurance policies, and military benefits. These components work together to form a complete picture of how your affairs should be managed.
Your estate plan also clarifies who will make financial or medical decisions on your behalf if you’re unable to do so due to illness or injury.
A well-crafted estate plan starts with a few essential documents that outline your wishes and designate trusted individuals to act on your behalf. These documents will work together to cover all financial, legal, and medical decisions.
Your last will and testament outlines how you want your assets distributed after your passing. This may include property, savings, personal belongings, and other valuables.
Your will can also name guardians for your minor children, which is especially important for military families who live far from extended relatives. Generally, it also appoints an executor, who is the person responsible for carrying out your instructions and managing your estate.
In this document, you can also include clear “final wishes,” such as funeral preferences or specific instructions, to further guide your loved ones during a difficult time.
A Durable Power of Attorney (POA) allows you to designate an adult you trust to manage your financial matters during deployment or if you’re unable to act on your own.
You may choose to grant broad authority or limit it to specific tasks, such as paying bills or managing accounts. A clearly defined scope and duration of the POA help guarantee that your intentions are carried out without confusion.
A Healthcare Power of Attorney allows you to name someone to make medical decisions on your behalf if you’re unable to communicate your wishes.
A living will complements this by outlining your preferences for end-of-life care. This often includes decisions about life-sustaining treatments or other medical interventions.
Make sure your designated representative knows how to access these documents and has the information needed to act in your best interest. This will give your loved ones one less source of stress during an already challenging time.
Beneficiary designations determine who receives certain assets, such as payouts from life insurance policies, retirement accounts, and your Thrift Savings Plan (TSP).
It’s important to understand that these designations typically override instructions in your will. You can ensure your assets are distributed according to your current wishes by keeping your beneficiary designations up to date.
In addition to standard estate planning documents, your military benefits need to be taken into consideration.
You likely already have Servicemembers’ Group Life Insurance (SGLI), which provides life insurance coverage to eligible servicemembers.
We strongly recommend regularly reviewing your SGLI beneficiary designations, so they reflect your current situation. Understanding the structure of payouts can help you plan how these funds will support your family.
The Survivor Benefit Plan (SBP) provides ongoing income to your spouse or eligible dependents after your passing.
Decisions about enrollment, coverage levels, and related costs significantly impact how this benefit will support your family. You can regularly review your SBP elections to see that they remain in line with your long-term financial objectives.
The Department of Veterans Affairs (VA) offers survivor benefits, including Dependency and Indemnity Compensation (DIC), to eligible family members.
These benefits are designed to provide a steady source of income for your loved ones, which makes it important to coordinate them with other financial resources in your estate plan.
Your Thrift Savings Plan (TSP) is another retirement asset that should be included in your estate plan.
As with everything else, regularly check your beneficiary designations to avoid delays or complications. TSP distribution rules also help your beneficiaries prepare for how and when they may receive funds.
If you have children, estate planning becomes even more important. You’re not only protecting assets, but you’re also planning for their care and future. Naming a legal guardian means someone you trust will care for your children if you’re unable to do so. This is especially important for military families, where frequent moves and deployments might complicate informal arrangements.
In some cases, you may consider setting up a trust to manage assets for your children. A trust helps control how and when funds are distributed while also avoiding probate delays.
Another consideration is to plan for your children’s education and long-term care. By coordinating savings plans, benefits, and insurance, you create a more stable financial future for your children.
Your estate plan should evolve as your life changes. Regular updates keep your documents and designations up-to-date with your current situation.
It is important to develop a thorough estate plan to provide security in such an unthinkable event. An estate plan ensures that your loved ones are taken care of; that your assets are distributed in the exact way you’d like after your passing; and that you provide answers to these questions:
An estate plan ensures you answer these questions well in advance of your death, for a smooth transition of responsibility and assets. Three key documents should be included in your estate plan:
Each state has specific laws regarding estate plans, so be sure to consult with an estate planning attorney.
If you’re not sure where to begin estate planning, start by breaking it into manageable steps that make the process more approachable.
First, look for available military resources, such as legal assistance offices on base. These services may be able to help you draft basic estate planning documents at little or no cost.
You might also consider working with a financial advisor or attorney who understands military benefits. They have the military-specific understanding to see that your estate plan aligns with your broader financial strategy.
Finally, create a centralized estate planning file that includes all your important documents, and make sure your beneficiaries and designated representatives have access. It may be handy to have both physical and digital copies organized, so your loved ones know where to find what they need when it matters most.
AAFMAA Wealth Management & Trust LLC (AWM&T) has helped servicemembers, Veterans, and their families manage their wealth and other assets since 2012. Start your financial planning with a foundation conversation with a trusted AWM&T Relationship Manager. Contact us today for more information about how we can help you give your loved ones peace of mind.