The term “estate planning” may conjure ideas of extremely wealthy people bequeathing enormous sums of money or precious family heirlooms to their descendants. In fact, it’s actually something most people need to do, including military servicemembers. Estate planning will help prevent financial stress for your loved ones in case of your death. Estate Planning doesn’t have to be overwhelming. Here’s what you need to know.

Why Estate Planning Is Critical Before Deployment

As you prepare for deployment, consider the distinct challenges that may arise for you and your family during your absence. Deployments often involve extended periods away from home, during which unforeseen events might occur. Having a comprehensive estate plan guarantees that your family's financial and legal affairs are managed according to your wishes, providing peace of mind for your loved ones while you’re away.

With an estate plan, you can designate beneficiaries, appoint decision-makers for your care if you’re incapacitated, and outline directives for dependents. Proactively addressing these matters minimizes potential legal complications and uncertainties, even in your absence.

Key Components in Military Estate Planning

As you prepare for deployment estate planning, consider the following:

• Will: Specifies how assets are distributed upon your death and can designate guardians for minor children. 
• Trusts: Manage your assets during life and after death, offering control over asset distribution and potential tax benefits. 
• Durable financial power of attorney: Appoints someone to handle financial matters if you’re incapacitated. 
• Advance healthcare directive: Combines a living will and medical power of attorney to outline healthcare preferences and designate a decision-maker if you are unable to communicate. 
• Beneficiary designations: Ensures your life insurance policies and retirement accounts have up-to-date beneficiaries. 
• Letter of instruction: Provides additional guidance to your survivors, including funeral preferences and the location of important documents.

Essential Documents for Estate Planning

The three most important documents you’ll need for effective estate planning are the following:

Will 

A will is a legal document that specifies how your assets should be distributed upon your death. It allows you to designate beneficiaries for your property, appoint guardians for minor children, and outline specific funeral arrangements. For servicemembers, wills are must-haves, given the unpredictable nature of deployments and assignments. Without a valid will, state laws will determine the distribution of your assets, which may not align with your wishes. Regularly update your will so that it reflects your current wishes and circumstances.

Power of Attorney 

A Power of Attorney (POA) is a legal document that grants a trusted individual the authority to make financial and legal decisions on your behalf in your absence or if you become incapacitated. This is particularly important for servicemembers who may be deployed or stationed away from home. In your absence, POAs guarantee that matters such as bill payments, property transactions, and other financial affairs can still be managed. Choose a reliable and responsible person as the POA, as they will have significant control over your personal affairs during the specified period. A general or durable POA gives broad powers while a limited or specific POA contains the power to a timeframe or purpose, such as the sale of property. Be sure to prepare the right type of POA for your needs.

Living Will

A living will, also known as an advance healthcare directive, outlines your preferences regarding medical treatment in situations where you’re too incapacitated to communicate your wishes. This document specifies the types of medical interventions you do or do not wish to receive, such as life support measures or resuscitation efforts. A living will provides clear guidance to healthcare providers and relieves the burden from your family members during critical or emotionally challenging times. 

Benefits of Early Estate Planning for Servicemembers

Early estate planning is essential for servicemembers because of the challenges of military life. A comprehensive estate plan gives you and your family peace of mind that your legal, financial, and personal affairs will be managed according to your wishes. 

Avoid Legal Complications

Without proper estate planning, you risk leaving your assets subject to state intestacy laws, which may not align with your personal wishes. Having an estate plan in place before you’re deployed is a smart, proactive approach that prevents the lengthy and often costly probate process for your loved ones.

Provide Peace of Mind for Your Family

Your estate planning documents will provide clear directives and reduce the emotional burden on family members who might otherwise have to make difficult decisions without guidance.

Protect Assets During Deployment

Deployments can complicate the management of your personal affairs. Servicemembers can simplify at least some of the pre-deployment process by designating a trusted individual through a POA. Doing so ensures that your financial and legal matters are handled appropriately in your absence. These types of matters include managing bank accounts, paying bills, and overseeing property transactions. Additionally, make sure you regularly update your beneficiary designations so that your assets are transferred according to current wishes and reflect any life changes such as marriage, divorce, or the birth of a child.

How to Get Started with Military Estate Planning 

Here are three ways to plan your estate before deployment.

Use Military Resources for Estate Planning

Military servicemembers and their families have access to specialized legal assistance that offers estate planning services through the legal assistance office on your military installation or through your unit at no cost. These offices can help draft the documents you need and provide guidance tailored to your specific needs. 

The military provides several resources to assist servicemembers with estate planning. For instance, Military OneSource offers guidance and tools to help create or update estate plans, including access to estate planning attorneys. There’s also the Servicemembers' Group Life Insurance (SGLI) to consider integrating into your estate planning. AAFMAA Members can also access the Law Assure program through their Member Center account. Law Assure allows the user to draw up their own estate documents through templates created by attorneys and is made possible through our partnership with AUSA.

Reviewing and Updating Your Plan Regularly

Given the dynamic nature of military life, it’s a good idea to review and update your estate plan regularly. Life events such as deployments, promotions, relocations, or changes in family status can significantly impact your estate planning needs. Regular reviews help you make sure your current wishes and all beneficiary designations are up-to-date. Additionally, staying informed about changes in military benefits or federal and state laws that could affect your estate is key to successful estate planning.

Plan for the Future with AAFMAA 

As an  AAFMAA Member, you gain access to expert advice and planning as well as insurance and other strategic financial solutions. Contact us today to learn more about our many Membership benefits.