Although the vote for independence from England took place on July 2, 1776, we celebrate the passage of the Declaration of Independence by the Continental Congress on July 4th of each year, which marks the date Congress adopted the declaration. This triggered the American Revolution, which lasted from 1776 until it ended 1783 with the signing of the Treaty of Paris, which confirmed the United States’ complete separation from the British Empire. As we celebrate our country’s independence, we must contemplate and reflect on the soldiers who fought for that result. I always thing about the families left behind, both from that war and every war in which the United States has engaged since that time. Considering our firm’s business, I also think about the inheritances and what we can do for our military persons today to help with their estate planning, as there are unique situations which necessitate keeping their estate planning current. If you are a military member, or have a family member in the military, we’ve compiled a list of things to consider to keep estate planning documents up to date.
Deployment and combat situations: Military personnel face higher risks due to their profession. Frequent deployments, combat zones, and training exercises increase the possibility of injury or death. Updating your estate plan ensures that your wishes regarding the distribution of assets, guardianship of children, and healthcare decisions are current and aligned with your intentions.
Beneficiary designations: Military benefits, such as life insurance policies, survivor benefits, retirement accounts, and death gratuity payments, often require the designation of beneficiaries. It is crucial to review and update these designations regularly to ensure that the correct individuals or other estate planning structures are named as beneficiaries. Failing to update beneficiary designations can result in unintended consequences, such as benefits going to an ex-spouse or an outdated designation.
Special considerations for military benefits: Military personnel are entitled to various benefits and entitlements, such as the Servicemembers’ Group Life Insurance (SGLI), Veterans Affairs (VA) benefits, and survivor benefits. Updating your estate plan allows you to incorporate these benefits into your overall plan effectively. It can include provisions for the transfer of benefits, maximizing their utilization, or addressing specific military-related concerns.
Deployment-related legal issues: Military deployments can present unique legal challenges. Having an up-to-date estate plan can help address issues such as power of attorney, healthcare proxies, and guardianship of children during deployment. Ensuring that your legal documents reflect your current wishes can provide peace of mind and help prevent complications in difficult situations.
Changing family circumstances: Military personnel may experience family changes, such as marriage, divorce, birth of children, or adoption, just like anyone else. These events can have implications for your estate plan, such as updating beneficiary designations, naming guardians for minor children, or addressing child custody matters. Keeping your estate plan current allows you to reflect these changes and ensure that your intentions are properly documented.
Tax planning and financial considerations: Estate planning includes considerations for minimizing taxes and optimizing financial strategies. Reviewing and updating your estate plan can help take advantage of available tax benefits, such as exemptions or deductions, and adapt to changes in tax laws. It allows you to make informed decisions regarding your assets, investments, and financial goals, considering your military benefits and future plans.
Deployment of digital assets: In today’s digital age, military personnel may possess various digital assets, including online accounts, social media profiles, or encrypted data. Updating your estate plan can include provisions for managing and transferring these digital assets, ensuring that they are properly addressed in your plan.
By keeping their estate planning up to date, military personnel can ensure that their unique needs and circumstances are accounted for, their loved ones are protected, and their wishes are carried out effectively. It provides peace of mind during times of deployment, mitigates potential legal complications, and helps maximize the benefits available to them and their families.
