My stepdad is in the military and dying of cancer. Will my mom automatically get his money?
“My worry is that one of his kids from his other marriage or one of his siblings will pop up and say they deserve his assets.”
The concern here revolves around the distribution of a military member's benefits and estate after they pass away, particularly when there are complex family dynamics involved. In the United States, military members are entitled to certain benefits, including Servicemembers' Group Life Insurance (SGLI) and military pension benefits. These benefits are typically distributed according to the service member's designation of beneficiaries.
The distribution of these benefits can be influenced by the service member's will, beneficiary designations, and applicable laws such as the Uniformed Services Former Spouses' Protection Act (USFSPA). The USFSPA allows state courts to treat military retirement pay as divisible property in divorce proceedings, but it does not automatically entitle a surviving spouse to the entirety of the service member's benefits, especially if there are competing claims from other family members or beneficiaries.
To watch next: The specifics of the service member's will, beneficiary designations for his SGLI and any other benefits, and any existing divorce or separation agreements will play a crucial role in determining how his assets are distributed. The surviving spouse, in this case, the writer's mom, should consult with a legal professional who has experience in military benefits and estate planning to understand her rights and any potential next steps.
Originally reported by marketwatch.com. LargecapNews adds analysis for finance & markets readers.