If you are a U.S. military veteran, then you have several options for leaving income to your beneficiaries when you die that other people do not have.
When a military retiree dies their retirement payments stop. Of course this is bad news for your surviving spouse on top of an already devastating event. However, that is where the Survivor Benefit Plan becomes an option.
The SBP is basically an insurance plan that will provide the surviving beneficiaries with a monthly payment. At retirement of the military veteran this plan takes effect automatically as long as no other valid elections have been made. And depending on the amount you elect to pay as premium, your surviving beneficiary could receive up to 55% of your retirement pay.
Another benefit of this plan is that you can choose to leave the benefit to not only your surviving spouse, but also to your child, former spouse and even someone who is of an 'insurable interest,' like a business partner.
If you this is a plan that you are eligible for then you should start thinking about how to structure it as part of your estate litigation. Perhaps you already have other insurance plans or means of income to support your surviving spouse and would like to use this to help your child or grandchild. You may be able to create a separate trust to do just that.
Please consult with a professional Los Angeles estate litigation Attorney to learn about all of your options and how best to implement them.
*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.