Estate Planning Considerations For Military Members

Military veterans account for millions of the population and have special benefits due to their service making retirement planning for the group unusual. However, there are some simple tips that every estate planner can follow that can make planning for a veteran easier:

• Military pensions are guaranteed and should be treated as a low risk asset when planning. As a result, other assets may be safely invested in portfolios that have a greater potential risk but also return.
• Make sure the service member is aware of the Survivor Benefit Plan. The plan must be opted into within three years of retirement and a premium paid in order to guarantee a percentage of the income stream for a surviving spouse or qualified dependent including disabled adult children. 
• Run the numbers to test if the Serviceman’s Group Life Insurance policy is worth opting into. Private plans might offer better returns but the SGLI might be the better option is the client is suffering from poor health or other issues that increase the cost of a private plan.

See Wilson Moy, Unique Estate Planning Considerations for Members of the Military, Wealth Management, August 21, 2015.

Special thanks to Jim Hillhouse for bringing this article to my attention.