From the Expert: As one of MOAA’s two finance and benefit counselors, I frequently field questions from members on survivor issues. Members will often ask us: “What will my spouse receive when I pass away?” Even more frequently, we hear from surviving spouses who have no idea what benefits they are entitled to receive.

The new MOAA publication Preparing for the Loss of a Military Spouse seeks to address these concerns. The publication serves both to assist military families to get their affairs in order and to help guide survivors through the next steps they need to take after a loved one’s death.

Financial Benefits

The first section of the booklet deals with potential financial and military benefits that survivors might receive. Many veterans are surprised to discover that entitlement to retired pay stops at midnight on the date of
the servicemember’s death.

If a servicemember signed up for the Survivor Benefit Plan (SBP), then upon death, their beneficiary could receive an annuity that provides 55% of
a “base amount” of retired pay. The base amount was selected at the time of retirement and cannot be changed.

A veteran’s disability payments from the VA also stop upon the death of the servicemember. However, if the VA determines a veteran’s death is attributable to a disease or injury incurred or aggravated during active service, or if the veteran had a total service-connected disability rating, the surviving spouse might be eligible for Dependency and Indemnity Compensation (DIC).

Military Benefits

When a sponsor dies, surviving spouses (and dependent family members) continue to remain eligible for all benefits for which they were previously authorized.

This includes medical care, commissary, exchange, etc. Other programs, such as access to educational benefits, will depend on specific eligibility criteria.

Non-Military Benefits 

A host of non-military benefits and tax breaks might be available to surviving spouses and even, under certain circumstances, surviving divorced spouses. Widows and widowers can typically get up to 100% of the worker’s Social Security benefit at full retirement age.

Surviving spouses might also be able to take advantage of the step-up in basis rule. This resets the cost basis of an inherited asset from its purchase price to the asset’s market value on the date of the owner’s death.

Estate Planning 

The second part of the publication focuses on getting affairs in order. Everyone, regardless of age or income level, should have an estate plan, and that plan needs to be periodically monitored and updated.

A thorough estate plan goes beyond a simple will and can also include advance care planning, trusts, and a letter of instruction that can help guide the person settling an estate through the process. It’s helpful to include a list of assets.

Other Guidance 

The booklet comes with a checklist to help guide survivors in the immediate days after their loss. There is also a resource list that includes organizations that focus on supporting surviving military families.

It’s important to not only create an estate plan but also to include your spouse and loved ones in the conversation. It’s a difficult discussion to have, but it will save your family stress in the long run.