Veterans and Estate Planning: How to Protect Your Legacy

As veterans transition into civilian life, it’s essential to consider long-term planning for their financial and personal affairs. One of the most critical aspects of this is estate planning, which helps ensure that veterans’ assets are distributed according to their wishes and that their families are protected in the event of their passing. Estate planning is not just about creating a will; it also involves designating beneficiaries, assigning powers of attorney, and making critical health care decisions.

In this blog, we’ll offer veterans advice on how to begin estate planning, including the steps to create a will, designate beneficiaries, and access VA resources to protect their legacy. Additionally, we will discuss how Warrior Allegiance can help veterans navigate the estate planning process and find the right resources.

1. Why Estate Planning Is Important for Veterans

Estate planning is about taking control of how your assets—such as property, savings, and investments—will be managed and distributed after your death. Without a proper estate plan, your assets may be subject to probate court, leading to potential delays and legal expenses for your family. Moreover, estate planning ensures that your healthcare wishes are respected in case you become incapacitated, and it allows you to designate trusted individuals to manage your affairs.

For veterans, estate planning offers several benefits:

• Protecting your family: An estate plan ensures your loved ones are provided for, reducing stress during difficult times.
• Minimizing taxes: A well-structured estate plan can minimize estate taxes, allowing your beneficiaries to inherit more of your assets.
• Ensuring your wishes are honored: Estate planning documents, like wills and powers of attorney, allow you to make clear, legally binding decisions about your healthcare, assets, and guardianship of minor children.

By taking the time to plan your estate, you protect your family’s financial future and ensure your legacy is secure.

2. Key Steps in Estate Planning for Veterans

Effective estate planning involves several key steps, from drafting a will to designating beneficiaries and assigning power of attorney. Below is a step-by-step guide to help veterans begin the estate planning process.

Step 1: Create a Will

A will is one of the most important documents in your estate plan. It outlines how your assets will be distributed after your death and allows you to name a guardian for any minor children. If you die without a will, state law will determine how your assets are divided, which may not align with your wishes.

When creating a will, veterans should consider:

• Naming an executor: The executor is responsible for carrying out the instructions in your will and ensuring that your assets are distributed according to your wishes. Choose someone you trust, such as a family member, friend, or attorney.
• Bequeathing assets: Clearly outline how you want your assets—such as property, savings, and personal items—distributed. You can leave specific bequests to individuals or charities.
• Designating a guardian: If you have minor children, name a trusted individual to serve as their guardian in the event of your passing.
• Action Step: Work with an attorney or use an online estate planning service to draft a legally binding will. Ensure that the document is signed and witnessed according to your state’s requirements.

Step 2: Designate Beneficiaries

Designating beneficiaries ensures that specific assets, such as life insurance policies, retirement accounts, and savings accounts, go directly to your chosen recipients without going through probate. Veterans should periodically review and update their beneficiary designations, especially after major life events like marriage, divorce, or the birth of a child.

Common assets that allow you to designate beneficiaries include:

• Life insurance policies: Many veterans have life insurance through programs like the Servicemembers’ Group Life Insurance (SGLI) or Veterans’ Group Life Insurance (VGLI). Make sure your beneficiary designations are current.
• Retirement accounts: 401(k) accounts, IRAs, and other retirement savings plans often allow you to designate beneficiaries who will inherit the funds directly.
• Bank accounts: Some financial institutions allow you to designate a payable-on-death (POD) beneficiary for savings and checking accounts, ensuring these funds transfer directly to the named individual.
• Action Step: Review and update your beneficiary designations regularly. This step is crucial to ensuring that your loved ones receive the benefits without unnecessary delays or legal complications.

Step 3: Assign Power of Attorney

A power of attorney (POA) is a legal document that grants someone the authority to manage your financial or healthcare affairs if you become incapacitated. There are two primary types of POAs that veterans should consider:

• Financial power of attorney: This document allows a trusted individual to manage your financial matters, such as paying bills or making investment decisions, if you are unable to do so.
• Healthcare power of attorney: This document designates someone to make medical decisions on your behalf if you are unable to communicate your wishes. This person will ensure that your healthcare preferences, such as resuscitation efforts and life support, are followed.
• Action Step: Choose trusted individuals to serve as your financial and healthcare power of attorney, and have the necessary legal documents drafted by an attorney.

Step 4: Create an Advance Directive

An advance directive, also known as a living will, is a document that outlines your preferences for end-of-life care. It provides instructions on the medical treatments you do or do not want, such as resuscitation, mechanical ventilation, and feeding tubes.

Having an advance directive in place can provide peace of mind, knowing that your healthcare decisions will be respected even if you are unable to communicate them.

• Action Step: Discuss your healthcare wishes with your family and healthcare provider, and have an attorney draft an advance directive to ensure your preferences are legally binding.

3. VA Resources for Estate Planning

The Department of Veterans Affairs (VA) offers several resources to help veterans with estate planning. These resources can be invaluable for ensuring that your estate plan is complete and that your family is protected.

VA Burial Benefits

The VA provides burial benefits to eligible veterans, including burial in a VA national cemetery, a burial flag, and a government headstone or marker. Veterans should ensure that their estate plan includes information about their preferences for burial or cremation.

• Action Step: Contact the VA National Cemetery Administration to learn more about your burial benefits and how to include these in your estate plan.

VA Life Insurance Policies

Veterans enrolled in Servicemembers’ Group Life Insurance (SGLI) or Veterans’ Group Life Insurance (VGLI) can name beneficiaries for their life insurance policies. Ensure that your beneficiary designations are up-to-date and in line with your estate plan.

• Action Step: Visit the VA Insurance website to update your beneficiary information and learn about additional life insurance options available to veterans.

VA Survivor Benefits

The VA also provides survivor benefits for the spouses, children, and dependent parents of veterans. These benefits include Dependency and Indemnity Compensation (DIC), Survivors Pension, and Educational Assistance. Veterans should ensure that their estate plan includes information on how their family can access these benefits after their passing.

• Action Step: Contact your local VA office or visit the VA website to learn more about survivor benefits and how to include them in your estate plan.

4. How Warrior Allegiance Supports Veterans in Estate Planning

Warrior Allegiance is dedicated to helping veterans plan for the future and protect their legacies. The organization offers resources and guidance to veterans and their families on estate planning, including:

• Educational workshops: Warrior Allegiance hosts workshops that provide veterans with essential information on estate planning, including how to create a will, designate beneficiaries, and assign power of attorney.
• Legal referrals: The organization can connect veterans with attorneys who specialize in estate planning and can provide personalized advice on how to create a comprehensive plan.
• Ongoing support: Warrior Allegiance offers continuous support to veterans and their families, ensuring they have access to the resources needed to protect their financial future.
• Action Step: Visit Warrior Allegiance’s website to learn more about estate planning resources and support services available for veterans.

Conclusion

Estate planning is an essential step in protecting your legacy and ensuring that your loved ones are provided for after your passing. For veterans, creating a will, designating beneficiaries, assigning power of attorney, and planning for end-of-life care are all critical components of a comprehensive estate plan.

With the support of VA resources and organizations like Warrior Allegiance, veterans can take control of their estate planning and safeguard their family’s future. By starting the process today, you can ensure that your legacy is preserved and your wishes are honored.