Military Benefits and Estate Planning: An Introduc8on

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Hilary Jackson
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1 Military Benefits and Estate Planning: An Introduc8on Drew N. Early May 9, 2013

2 Even if your client doesn t care, you should Rule 1.1: know the basics (or refer out) Rule 1.4: so client may make informed decisions Bad planning/no planning is costly

3 Know the benefits The Basics Know the estate planning process Understand client s needs Not an advanced estate planning seminar We will not consider estate and gi[ tax issues (I would only hope these clients have to worry about estate tax )

4 The Benefits Military: Ac8ve or Re8red Pay Medical (TriCare) SBP VA: Compensa8on Disability Dependency and Indemnity Compensa8on Pension Medical Social Security: SSDI Medicare/Medicaid

5 Discover The Client s Needs Income: for self/others Asset transfer: for others Medical care: for self/others Special Needs? Adult disabled child? Dependent/SSDI/SSI Infirm spouse? What s in place? POAs Will Trust Beneficiary Designa8ons

6 The Basic Documents Advance Health Care Direc8ve Durable Financial Power of Aborney Will

The Basic Documents Advance Health Care Direc8ve Health Care POA & Living will Governed by OCGA 31-32- 5 Format changed in 2007 Voluntary If needed

7 The Basic Documents Advance Health Care Direc8ve Health Care POA & Living will Governed by OCGA Format changed in 2007 Voluntary If needed and not in place, get it done OR Alterna8ve is to pursue a Guardianship in local Probate Court = 8me and money Durable Financial Power of Aborney Will

8 The Basic Documents Advance Health Care Direc8ve Durable Financial Power of Aborney Governed by OCGA Voluntary but If needed and not in place, get it done OR Alterna8ve is to pursue a Conservatorship in local Probate Court = 8me and money Conservator only authority to act; requires bond Will

The Basic Documents Advance Health Care Direc8ve and Durable Financial Power of Aborney Client s8ll retains authority Client or agent may act OBO client That authority may be

9 The Basic Documents Advance Health Care Direc8ve and Durable Financial Power of Aborney Client s8ll retains authority Client or agent may act OBO client That authority may be restricted Protec8ons Client can change/revoke agents FPOA agent in Georgia is a Fiduciary Owes higher duty of care to the client Consider VA Fiduciary or Social Security Rep Payee appointments

The Basic Documents Advance Health Care Direc8ve Durable Financial Power of Aborney Will No will = intestate proceeding (meaning GA determines probatable estate

10 The Basic Documents Advance Health Care Direc8ve Durable Financial Power of Aborney Will No will = intestate proceeding (meaning GA determines probatable estate distribu8on) Spouse may always claim Year s Support ILO will Will or Year s Support provides best mechanism for outright distribu8on All estate ac8ons brought through Probate Court

11 The Probatable Estate Probate vs. non- probate Passing through or outside of the estate Non- probatable: JTWROS: Accounts Deed TOD/POD Designated beneficiary accounts: Insurance Policies Prac+ce Tip Financial Ins8tu8ons: Money Market/Stocks IRAs Automobiles

12 The Probatable Estate Follows standard proceedings Takes 8me, need witness verifica8ons or Interrogatories to enact Ac8on brought through Probate Court of county of decedent If access to funds will be an immediate issue for Survivors, make alterna8ve arrangements: Named beneficiaries, not a named estate Joint account holders Prepaid burial VA cemetery Prac+ce Tip

13 Maintaining The Estate Review a[er life- changing events Birth/death Marriage Divorce Re8rement Update agents Update beneficiary designa8ons Review needs

14 Special Quirks w/ Military Benefits Military Re8rement and VA: CRSC CRDP Don t change SBP designa8on? guess who gets it SBP and DIC: nega8vely impacts surviving spouse from compensa8on perspec8ve offset is in place Legisla8on defeated for the last 15 years

Military Health Benefits and Planning Military re8ree w/ VA health care may not want (or need) Medicare Part B DIC also provides for VA health care to surviving spouse Disabled vet

15 Military Health Benefits and Planning Military re8ree w/ VA health care may not want (or need) Medicare Part B DIC also provides for VA health care to surviving spouse Disabled vet rated 70% or higher doesn t need to think about Medicaid In GA, a veteran who served during war8me period and has been resident here for 5+ years doesn t have to think about Medicaid.

The Bobom Line If client doesn t have POAs in place and is incapacitated, only op8on is Guardianship/Conservatorship If client doesn t have a will and dies in GA, GA law

16 The Bobom Line If client doesn t have POAs in place and is incapacitated, only op8on is Guardianship/Conservatorship If client doesn t have a will and dies in GA, GA law governs as to descent and distribu8on Discuss the ramifica8on of that w/ client Consider facilita8ng estate administra8on Make beneficiary designa8ons Keep them up to date

17 Military Benefits and Estate Planning Ques8ons? Thank you for the opportunity to serve a deserving client base

The Social Security Administration requires the following information:

The Social Security Administration requires the following information: When A Death Occurs The time immediately following the death of a loved one can be days of intense sorrow and emotional stress. The Funeral Director may act as an advisor on many of the immediate problems;