Joining the military often sets individuals on a path that is distinctly different from pursuing higher education or entering the civilian workforce. Every year around Veterans Day, we honor the sacrifices of those who have served our country. However, we do not always pause to consider the unique experiences and challenges Veterans face when their military service ends, especially the transition from a highly structured and supported military environment to civilian life, where personal and financial planning often rests entirely on their own shoulders.
As a Veteran, you have dedicated your life to serving others; service and sacrifice come naturally to you. Creating an estate plan may not immediately come to mind as another way to serve and protect those you love. For Veterans, however, a standard estate plan is often insufficient. Military service brings unique benefits, responsibilities, and considerations that require thoughtful coordination to ensure that you and your loved ones are fully protected.
A “Mission Plan” for Protecting Family, Benefits, and Legacy
As a Veteran, you are no stranger to paperwork. From the extensive documentation required for recruitment and enlistment to the detailed records of assignments, pay, training, medical history, and awards maintained throughout your career, you have likely been responsible for keeping records that are vital for verifying your service history and accessing service-related benefits.
Estate planning documents serve a different but similarly important purpose. They are designed to protect your loved ones and ensure that your personal wishes are carried out if you become incapacitated (unable to manage your affairs) or after your passing.
Dwight D. Eisenhower’s assertion that “plans are useless, but planning is indispensable” stresses the value of developing multiple contingency plans for probable scenarios and unexpected situations. The same principle applies to your estate plan: While your specific documents may evolve over time, the process of thoughtfully creating a plan helps ensure that you and your loved ones are prepared for whatever life may bring. Your estate plan allows you to specify who should inherit your service-related benefits and other assets (accounts and property), name guardians for your children, and appoint trusted individuals to manage your affairs if you become incapacitated and wind down your estate after your passing. The main documents of a comprehensive estate plan include the following:
- Last will and testament. A will provides clear instructions for the distribution of your accounts and property that do not have a joint owner or beneficiary designation. It is also the document in which you can legally nominate a guardian for your minor children if you pass away and the children’s other legal parent is unable to care for them.
- Trust. Whether included as part of your will (testamentary trust) or a standalone document (revocable living trust), trusts can help you manage how and when your assets are distributed rather than leaving your loved ones an outright inheritance. One key difference between testamentary trusts and revocable living trusts is that testamentary trusts must be administered through the often costly, long, and public probate process, whereas a revocable living trust is administered privately.
- Powers of attorney. Financial and medical powers of attorney are both essential components of a complete estate plan. A financial power of attorney lets you designate someone you trust to serve as your agent to handle your legal and financial affairs if you are incapacitated or otherwise unable to manage them yourself. A healthcare power of attorney authorizes a trusted person to make medical decisions on your behalf and communicate with your healthcare providers if you are unable to, ensuring that your treatment preferences are followed and your values are upheld.
- Living will or advance directive. This estate planning tool allows you to outline your wishes regarding medical treatment and end-of-life care. It complements your healthcare power of attorney by providing clear guidance about your medical wishes and sparing your loved ones the stress of having to guess what you would have wanted. Without it, disagreement among family members about your care could, in rare cases, lead to court involvement, and a judge might need to decide whether certain medical procedures or life-sustaining measures should be provided or withheld.
- Beneficiary designations. Retirement accounts, life insurance policies, and military benefits such as Servicemembers’ Group Life Insurance (SGLI), the Thrift Savings Plan (TSP), and the Survivor Benefit Plan (SBP) are distributed directly to the individuals named on the beneficiary designation forms on file when you pass away, regardless of what your will or trust says.
Together, these tools form the foundation of your estate plan—a mission plan for protecting your loved ones, benefits, and legacy. Just as every mission has its own objectives, so does your estate plan; the way you use these tools will depend on your unique circumstances and goals. As a Veteran, you need to carefully coordinate your plan with your military benefits so that they work seamlessly together to support your family as you intend in both foreseen and unforeseen situations.
Estate Planning for Veterans
Estate planning can be complex for anyone, but it can be especially challenging for Veterans. In addition to managing the same personal, financial, and family considerations as civilians, Veterans must also account for a unique mix of military benefits that include earned entitlements and needs-based programs. These benefits can be affected, delayed, or even reduced if your estate plan is not updated to reflect your transition from military to civilian life.
Taking these proactive steps can help ensure that your benefits, health coverage, and estate plan all work together to protect you and your family:
- Review Veterans Affairs (VA) benefits. You may qualify for various programs, including VA Disability Compensation, VA Pension, and Dependency and Indemnity Compensation (DIC). Because some benefits are income- or asset-tested, improper planning—such as leaving assets outright to a spouse instead of through a trust—could unintentionally disqualify your spouse from receiving or continuing those benefits.
- Update estate planning documents. Veterans who created an estate plan while still in the military or before enlisting should review and update that plan after transitioning to civilian life. You may now have new income sources, a civilian employer-sponsored retirement account, or different insurance coverage. Your housing situation, family needs, and available benefits may also have changed. Updating your plan ensures that your assets, beneficiaries, and decision-makers remain aligned with your current circumstances and long-term goals.
- Preserve survivor benefits. SBP elections made during military service can still significantly affect the financial security of a surviving spouse or dependent. It is important to review those elections after retirement or major life changes and coordinate them with other benefits, such as life insurance or Social Security, to ensure continued protection for your family.
- Incorporate trust-based planning. Trusts can help preserve eligibility for means-tested benefits such as VA pensions, Aid and Attendance, or other government assistance programs. They are especially valuable for Veterans with minor children or dependents who have disabilities, special needs, or other circumstances—such as substance use challenges, mental health conditions, or difficulty managing money—that make a direct inheritance unwise.
- Document your wishes for your funeral and burial. Veterans may wish to include specific instructions in their estate plan regarding funeral and burial preferences. These can include requests for burial in a VA national cemetery, a headstone or marker provided by the Department of Veterans Affairs, and the inclusion of military honors at the service. Documenting your wishes in advance helps ensure that they will be carried out with accuracy and respect and relieves loved ones of having to make difficult decisions during an emotional time.
- Work with an experienced attorney. You may be receiving a mix of VA pensions, disability compensation, and military retirement accounts in addition to civilian income, employer-sponsored retirement plans, and insurance policies. An experienced estate planning attorney can help coordinate these benefits and assets to create a plan that protects your eligibility, maximizes available resources, and aligns with your long-term goals.
Mission-Driven Planning
Your service taught you the importance of seeing a mission through no matter the challenge. That same sense of duty guides the most important mission of all: safeguarding your family’s future.
Even the best mission plans may change, break down, or require adjustment on the fly. But that does not make planning any less important.
Having any plan is better than having no plan. But a plan that is not mission-ready can be almost as problematic, leaving you and your loved ones exposed on life’s battlefield. That is why you should coordinate with an attorney who can ensure that your estate planning tools are crafted to preserve your hard-earned military benefits while still meeting family planning needs.
You served our country; now it is our turn to serve you. Schedule a consultation.
Posted in: Estate Planning, Trust, Veterans