Estate Planning for Military: Wills, Trusts & Beneficiaries Complete Guide

Bottom Line Up Front: Free will preparation at JAG office on every base. Minimum estate plan: Will + Power of Attorney + Healthcare Directive. Update after major life events (marriage, kids, divorce). Beneficiaries override will for TSP, SGLI, retirement (check annually). Most service members need simple will ($0 at JAG) not expensive trust ($2,000-$5,000). Without will, state decides who gets assets (often not what you want).

Why Military Members Need Estate Plans

Deployment Risk

• Combat deployments increase mortality risk
• Need plan in case worst happens
• Without will: State law determines asset distribution (may not match wishes)

Frequent Life Changes

• Marriage, kids, divorce, remarriage = beneficiaries change
• PCS every 2-3 years = state laws change
• Need to update regularly

Complex Assets

• TSP, SGLI, military retirement, VA disability, real estate
• Different rules for each
• Need coordination

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The 3 Essential Estate Planning Documents

1. Last Will and Testament

What it covers:

• Who gets your property (house, car, personal items)
• Guardian for minor children
• Executor (person who manages estate)
• Distribution of assets

What it DOESN'T cover:

• TSP (has separate beneficiary)
• SGLI (has separate beneficiary)
• Retirement pay (has separate beneficiary)
• Jointly-owned property (goes to joint owner automatically)

Cost:

• JAG office: FREE (available on every base)
• Civilian lawyer: $500-$2,000
• Online (LegalZoom): $100-$300

Recommendation: Use JAG (free, familiar with military)

2. Power of Attorney (Financial)

What it does:

• Gives someone authority to manage finances if you're incapacitated
• Especially important during deployments

Types:

• Durable: Remains valid if you're incapacitated
• Springing: Only activates if you're incapacitated

Who to appoint:

• Usually spouse
• Backup: Parent or sibling
• Must be trustworthy (has access to ALL your finances)

Get at: JAG office (free)

3. Healthcare Directive (Medical POA)

What it does:

• Allows someone to make medical decisions if you can't
• End-of-life preferences
• Organ donation wishes

Who to appoint:

• Usually spouse
• Backup: Parent
• NOT same person as financial POA if they're also beneficiary (conflict of interest)

Get at: JAG office (free) or state-specific form online

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Beneficiary Designations (CRITICAL)

Beneficiaries OVERRIDE Your Will

Assets with separate beneficiaries:

1. TSP (Thrift Savings Plan)
2. SGLI (Life Insurance)
3. Military Retirement
4. IRAs, 401(k)s
5. Bank accounts (if "Payable on Death" designated)

Example problem:

• Your will says: "Everything to my spouse"
• Your SGLI beneficiary: Ex-girlfriend (you forgot to update)
• Your ex gets $500,000. Spouse gets $0.

Fix: Update beneficiaries separately for each asset

Where to Update Beneficiaries

TSP:

• Log into TSP.gov
• Go to "Beneficiaries"
• Update and save

SGLI:

• Log into myPay
• Go to SGLI section
• Update beneficiary

Military Retirement:

• DFAS website
• SBP (Survivor Benefit Plan) election

Bank accounts:

• Call bank or visit branch
• Add "Payable on Death" (POD) beneficiary

When to Update Beneficiaries

Update within 1 week of:

• Marriage
• Divorce
• Birth of child
• Death of beneficiary
• Estrangement from family

Review annually (set calendar reminder)

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Do You Need a Trust? (Probably Not)

When You DON'T Need a Trust (95% of Military)

Simple will is sufficient if:

• ✅ Estate value <$1M
• ✅ No complex family situation (no disabled dependents, no contentious ex-spouses)
• ✅ Straightforward wishes ("Everything to spouse, then kids")
• ✅ Minor kids (will appoints guardian, trust not needed)

Cost of trust: $2,000-$5,000
Cost of will: $0 (JAG) to $500 (civilian lawyer)

Verdict: Save money, use simple will

When You DO Need a Trust (5% of Military)

Trust is beneficial if:

• ✅ Estate value >$1M (trust avoids probate)
• ✅ Disabled child (special needs trust protects government benefits)
• ✅ Blended family (trust ensures kids from first marriage get inheritance)
• ✅ Own rental properties (trust simplifies management)
• ✅ Want to avoid probate (trust assets transfer immediately, will goes through probate = 6-12 months)

Types of trusts:

• Revocable living trust: You control during life, avoids probate after death
• Irrevocable trust: Can't change, but protects assets from creditors
• Special needs trust: For disabled dependents

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Estate Planning by Life Stage

Single, No Kids (Age 20-30)

Minimum plan:

• Will (leave assets to parents or siblings)
• Financial POA (parent)
• Healthcare directive

Cost: $0 at JAG

Beneficiaries:

• SGLI: Parents (equal split) or siblings
• TSP: Parents or siblings

Married, No Kids (Age 25-35)

Minimum plan:

• Will (everything to spouse)
• Financial POA (spouse, backup: parent)
• Healthcare directive (spouse decides)

Beneficiaries:

• SGLI: Spouse
• TSP: Spouse
• Retirement: SBP election (Survivor Benefit Plan) for spouse

Cost: $0 at JAG

Married with Kids (Age 30-45)

Essential plan:

• Will (everything to spouse, then kids)
• Guardian designation for kids (if both parents die)
• Financial POA (spouse)
• Healthcare directive (spouse)
• Life insurance review ($1M+ recommended)

Beneficiaries:

• SGLI: Spouse (kids inherit if spouse dies first)
• TSP: Spouse primary, kids contingent
• Retirement: SBP for spouse

Guardian decision:

• Choose: Parents, siblings, close friends
• Discuss with them FIRST (ensure they're willing)
• Name backup guardian too

Cost: $0 at JAG (will + guardianship + POA)

Blended Family (Any Age)

Complex plan needed:

• Will (specify who gets what - biological kids vs. stepkids)
• Possibly trust (to ensure kids from first marriage get share)
• Clear beneficiary designations
• Life insurance to equalize (if leaving house to spouse but want kids to inherit equivalent value)

Example:

• You have 2 kids from first marriage
• Remarry, spouse has 2 kids
• Without planning: Spouse inherits everything, may not leave to your biological kids

Solution:

• Trust or specific will provisions
• Life insurance payable to your biological kids
• Clear communication

Cost: $500-$2,000 (civilian lawyer recommended for complex situations)

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Common Estate Planning Mistakes

❌ Mistake #1: No Will ("I Don't Have Enough Assets")

Reality: You die without will. State law decides distribution. May not match your wishes.

State law typically gives:

• Spouse gets 50%, parents get 50% (if no kids)
• Kids get everything, spouse gets nothing (in some states)
• Parents get everything if you're single

Fix: Get will at JAG. FREE. Takes 30 minutes.

❌ Mistake #2: Forgetting to Update Beneficiaries

Reality: You marry, have kids, get promoted. SGLI still lists ex-girlfriend. You die. She gets $500,000.

Fix: Update beneficiaries after EVERY major life event.

❌ Mistake #3: Not Appointing Guardian for Kids

Reality: You and spouse die. No guardian named. Court decides who raises your kids. May pick person you wouldn't want.

Fix: Name guardian in will. Discuss with chosen guardian first.

❌ Mistake #4: Buying Expensive Whole Life Insurance Instead of Simple Term + Will

Reality: Agent sells you $500/month whole life "for estate planning." You could get same coverage with $50/month term + free will at JAG.

Fix: Term life + will = Better and cheaper. Invest the $450/month difference in TSP.

❌ Mistake #5: Not Coordinating Beneficiaries

Reality:

• Will says: "Split evenly between 3 kids"
• TSP says: "100% to Kid #1"
• SGLI says: "100% to spouse"
• Distribution is messy, not what you intended

Fix: Ensure all beneficiary designations align with overall wishes.

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Survivor Benefit Plan (SBP) for Retirees

What Is SBP?

Military retirement survivor benefit

• Ensures spouse gets portion of your retirement pay after you die
• Cost: 6.5% of retirement pay (deducted from your pension)

Example:

• Retirement pay: $3,000/month
• SBP cost: $195/month (6.5%)
• You receive: $2,805/month
• If you die: Spouse gets 55% of retirement = $1,650/month for life

SBP vs. Life Insurance

SBP pros:

• Inflation-adjusted (COLA increases)
• Guaranteed for spouse's lifetime
• Can't be canceled (vs. term life that expires)

SBP cons:

• Expensive (6.5% of pension for life)
• Only covers spouse (doesn't help kids)

Life insurance pros:

• Cheaper (term life = $100/month vs. $195/month SBP)
• Lump sum (spouse can invest $500K, earn more than $1,650/month)
• Flexible

Which is better:

• SBP: If spouse is bad with money (guaranteed monthly income)
• Life insurance: If spouse can manage lump sum (more financial flexibility)

Many choose: SBP + life insurance (double protection)

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Free Resources for Military Estate Planning

JAG Legal Assistance

• Available: Every military base
• Cost: FREE
• Services:
  • Wills
  • Power of Attorney (financial + healthcare)
  • Living wills
  • Review of civilian documents

How to access:

1. Call base JAG office
2. Schedule appointment (or walk-in)
3. Bring: ID, spouse's info, kids' info, asset list

Military OneSource

• Phone: 800-342-9647
• Services:
  • Estate planning consultation
  • Referrals to attorneys
  • Financial counseling

ARAG Legal Service Plan (Some Bases Offer)

• Discounted legal services
• Wills, trusts, real estate
• $20-$50/month membership

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Action Steps

This Month (Everyone):

1. ✅ Go to JAG, get will prepared (FREE, 30-60 min appointment)
2. ✅ Get financial POA for spouse
3. ✅ Get healthcare directive

This Week:

1. ✅ Update SGLI beneficiary (myPay)
2. ✅ Update TSP beneficiary (TSP.gov)
3. ✅ List all assets and who should inherit them

Annually:

1. ✅ Review beneficiaries (TSP, SGLI, bank accounts)
2. ✅ Review will (does it still reflect your wishes?)
3. ✅ Update if major life change (marriage, kids, divorce)

Before Deployment:

1. ✅ Ensure will is current
2. ✅ Give copy to spouse
3. ✅ Verify all beneficiaries correct
4. ✅ Get financial + healthcare POA for spouse

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Verification & Sources

Official Sources:

• JAG Legal Assistance (free on all bases)
• SBP: DFAS.mil/survivors
• State intestacy laws (what happens without will)

Last Updated: October 31, 2025

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Remember: Estate planning isn't morbid - it's responsible. Protect your family with simple, free documents from JAG. Update beneficiaries annually. Don't die without a will. Your family will thank you.