Lots of them.
Fortunately, there are still folks in our society who voluntarily sign up for employment that first requires taking an oath to defend the United States and the Constitution against all enemies, foreign and domestic, even unto death itself.
Military service is a potentially hazardous profession, whether due to training accidents or actual hostile fire.
As a consequence, military families—particularly young families—need financial and estate planning advice.
This topic was taken up recently by The Wall Street Journal in an article titled "How to Serve Military Families."
The article notes that oftentimes military spouses are young and financially immature.
Since military families move frequently, nonmilitary spouses may have trouble finding a steady job that would provide a second income and a retirement plan.
In addition, if something happens to the service member and benefits are paid out, then the spouse will need to be able to access the benefits immediately.
As it turns out, it is more likely that young military families need help getting these estate documents in order and updating their beneficiary designations to prepare for such emergencies.
By their very nature financial and estate plans are not static. They need to reflect a family's current life situation, especially as that changes.
For example, beneficiary designations on retirement plans need to be reviewed and updated. Again, we are talking your soldiers, sailors and marines here. When they are in basic training it is not uncommon for them to name a boot camp buddy as the beneficiary of their Servicemembers Group Life Insurance (SGLI) policy.
What if they later marry? Obviously, this key component of family financial security needs to be updated without delay, especially if there are children!
Retirement and insurance plans pay named beneficiaries, separate from the will.
A service member's will may provide that all passes to the surviving spouse and, thereafter, his or her child canont access the assets left in trust until a designated age. However, if the child is the named beneficiary of the SGLI policy, then the proceeds will be paid directly to the child if he or she is 18 or has attained the state's age of majority.
This is rarely a good outcome.
Another option?
Have a trust created under the will to receive and administer the SGLI proceeds for the child!
Real estate is another area of concern for military families who move frequently and may own property in multiple states.
If the service member is killed, the property may end up in probate without the proper instructions. One might even think about creating a living trust to hold real estate assets wherever located to avoid probate everywhere.
If you are active duty military, then the first place to visit for basic estate planning assistance is your JAGC Office (Judge Advocate General's Corps). These are military attorneys who are there to serve you.
On the other hand, you may want to seek assistance "on the economy" if your circumstances are more complex.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
Reference: Wall Street Journal (April 19, 2016) "How to Serve Military Families"
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