Active duty military families should have a will, review SGLI life insurance and other beneficiary designations before deployment, create a durable power of attorney, sign a living will, and consider a special needs trust for dependents with disabilities. Frequent moves and deployments make these documents more urgent, not less.
Military service brings unique estate planning challenges. Families must be ready to move to a new duty station, or deploy overseas, often on short notice. That unpredictability makes it more important, not less, to have your estate planning documents in order, regardless of your age or marital status. Here are the key steps to take before deployment.
1. Start With a Will
A will is governed by state law, and moving frequently between states because of military service can feel like a barrier to getting one done properly. It should not stop you. Without a will, your estate is distributed according to the intestacy law of whichever state you were living in at your death, not according to your own wishes. An online will builder makes it straightforward to create and update a will as your duty station or family situation changes.
2. Consider a Trust, Including a Special Needs Trust
A trust can provide ongoing financial support for dependents, including a disabled family member, and can protect your wishes through a major life change like divorce or significant debt. Veterans are also more likely to face a service-connected disability than the general population. According to the U.S. Census Bureau, more than a third of Post-9/11 veterans have a service-connected disability, a 43 percent likelihood compared with lower rates among veterans of earlier eras. A special needs trust, sometimes called a supplemental needs trust, is managed by a trustee and can hold assets for a disabled beneficiary without those assets counting against eligibility for programs like VA disability compensation or Medicaid.
3. Review and Update Beneficiary Designations
Life insurance policies, retirement accounts, and certain bank accounts pass according to their beneficiary designation, not according to your will. Review these designations when you first create your estate plan, and again whenever you deploy overseas, since circumstances and relationships can change while you are away.
4. Create a Power of Attorney
A power of attorney designates someone to act on your behalf if you cannot, which matters enormously for service members deployed overseas or on long assignments. A power of attorney can be as broad or narrow as you need. You might limit it to a specific purpose, such as authorizing your spouse to buy or sell real estate, or grant broader authority if that fits your situation better.
5. Make an Advance Directive
An advance directive, sometimes called a living will, outlines your wishes for medical treatment if you cannot make decisions for yourself. Given the elevated risk of injury that comes with military service, this document deserves attention regardless of your age. Discuss your advance directive with your loved ones so they know how to find it if it is ever needed.
6. Review Your Life Insurance Coverage
Life insurance is a core piece of estate planning for military families. Servicemembers' Group Life Insurance, known as SGLI, is available to service members unless they opt out, and according to the Department of Veterans Affairs, active duty, Guard, and Reserve members can obtain coverage up to $500,000 in $50,000 increments. Service members can also purchase additional coverage for spouses and dependent children. Confirm your coverage amount and beneficiaries with your unit's personnel office if you are unsure.
7. Write a Letter Before Deployment
Before deploying, consider writing a letter of instruction covering your wishes for your family's care, your children's education, medical decisions, and where to find your important documents. A letter is not a legal document, but it gives your family a clear roadmap and can open a conversation about the future that is easy to put off otherwise.
A Worked Example
Consider a service member preparing for a six-month deployment overseas. Before leaving, they update their will to reflect a recent move, confirm their SGLI beneficiary still matches their current wishes, and sign a power of attorney authorizing their spouse to handle the mortgage and car payments while they are gone. Midway through the deployment, a family emergency requires selling a jointly owned vehicle. Because the power of attorney was already in place and specific about this authority, the spouse handles it without delay. Without that document, the family would have had to navigate a much slower process to get anything done in the service member's absence.
Common Mistakes to Avoid
- Assuming frequent moves make a will impractical, when the opposite is true
- Forgetting to update beneficiary designations before or during a deployment
- Skipping a special needs trust for a dependent who could lose government benefits from a direct inheritance
- Granting an overly broad power of attorney when a narrower one would serve just as well
- Never telling family members where to find your advance directive or letter of instruction
How FastWill Handles This
FastWill's online will builder makes it fast to create or update a will, power of attorney, and advance directive from anywhere, which matters when you move between states or deploy on short notice. If you want to understand the underlying terminology, our estate planning glossary covers the basics, and our companion article on what active duty military need to know about making a will covers more will-specific detail.
Frequently Asked Questions
Does my will need to be rewritten every time I move to a new state?
Not necessarily, but review it after each move to confirm it still meets your new state's execution requirements and reflects your current wishes.
What is the maximum SGLI coverage available to service members?
Service members can obtain up to $500,000 in SGLI coverage, in $50,000 increments, according to the Department of Veterans Affairs.
Why is a special needs trust important for military families?
Veterans face a higher rate of service-connected disability than the general population. A special needs trust lets you provide for a disabled dependent without disqualifying them from means-tested government benefits.
Should I update my power of attorney before every deployment?
Review it before each deployment to confirm your named agent, and the scope of their authority, still matches your current needs and circumstances.
Is a letter of instruction legally binding?
No, but it gives your family clear, practical guidance that a will or power of attorney may not cover in detail, such as where to find documents or your specific wishes for your children.
