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Estate Planning in the Navy
Everyone reading this needs to take a few estate planning steps. First, everyone needs a will, which you can get for free. Second, everyone needs to make sure your life insurance and retirement accounts have the correct beneficiaries. Third, many should consider working with an estate planning attorney, as we’ll discuss below.
You Need a Will
A properly constructed will ensures that your values and desires are carried out in the event you no longer can communicate them. While you may wish to give your estate to family members, your church, or a charity, without a will what happens to your assets is dictated by state law. The IRS, a nursing home, your spouse’s next spouse, or some other less than desirable entity may wind up with the lion’s share of your assets.
A will designates where you want your assets to go and, if applicable, who will take care of your children. A will usually names the guardian who will take care of your children and the trustee who will manage their assets. These roles can be the same person, or you can name different people. A will cannot specify when or for what purpose your assets should be given to your beneficiaries, so if you don’t have any other documents then the assets will be given according to your state law (Reference: Martin, Larson and Larson). For example, if you have an estate of $3 million (don’t forget that this number could be bigger than you think because it would include your life insurance) and you die without a will, your children could inherit all of that money at the age of 18 or 21, the most common ages of maturity.
There is no excuse for someone in the military – you need a will. You likely deploy, you are probably at higher risk of dying as a result, and you can get one for free at your local legal services office, which are located on almost every military base. If you have trouble locating legal assistance, you can find the office nearest your location by visiting this website. Military.com also has a great page about legal assistance you can find here.
If you just don’t trust me for some reason, there’s also an article on Military OneSource that explains the details about why you need a will.
Probate
If you have a will, upon your death the will must pass through probate. Probate is a process that can be tedious, expensive, and lengthy, depending on where you live. During probate a court validates your will and empowers the executor to use it. Assets like insurance policies and retirement accounts that name a beneficiary do not have to go through probate. Because it is expensive, public, and can be contested, probate is something to avoid if at all possible.
Keep in mind that once you have a will and have named beneficiaries for your life insurance and retirement accounts, you will need to update them if you marry, divorce, have children, your executor dies, one of your beneficiaries dies, you move to a different state, or any other significant life change occurs.
Estate Planning Attorneys
If you want to specify when or for what purpose your assets should be given to your beneficiaries or you want to avoid probate with a trust, this is where an estate planning attorney enters the picture. A common strategy is to create a trust for the benefit of your children that specifies when they are to receive your assets. For example, my estate plan gives my two children 1/3rd at the age of 20, 1/3rd at the age of 30, and 1/3rd at the age of 40. There are other options, such as granting a trustee or creating a more detailed estate plan that communicates your values to your children, such as paying for education or a down payment on a house even if they haven’t reached the age at which they’d normally get the inheritance.
You may also need an attorney to draft advance directives to specify your wishes if a medical emergency should occur. Who will be the decision maker? What are your specific life support decisions should your condition be irreversible? These documents are usually included in a comprehensive estate plan, but what isn’t included is the conversation you should have with your family. As medical professionals we all realize that these documents are rarely available when decisions need to be made, so having a conversation with your family about your wishes may be more important than having the actual documents.
You may also need powers of attorney to grant others the right to make financial decisions in the event of your incapacity. These can be “durable” (used at any time) or specific to certain conditions, such as your incapacity.
The federal estate tax, also known as the death tax, has changed many times since World War I. In 2020, a single person can pass $11.58 million to his/her heirs without paying estate tax, and those married can pass $23.16 million. Because most of us won’t have this high of a net worth, the federal estate tax is usually not an issue. Individual states, though, may also have estate or inheritance taxes that you need to plan for because many have much lower amounts that are tax free. Many states have very different laws, so make sure that any estate planning attorney you work with is familiar with the laws of your state.
The estate tax is not relevant if you die and you are passing assets to your spouse. Spouses can pass unlimited amounts without taxes. If your spouse is not a US citizen, though, the situation gets a lot more complicated.
If you have an estate worth more than $11.58 million (single) or $23.16 million (married) and you are trying to pass assets to a non-spouse, there are many different (and complicated) trusts and strategies you can adopt. The bottom line is that you’ll need the help of a qualified estate planning attorney.
The other option is to give away enough money as you approach the end of your life so that your estate is no longer above the limit. Take a look at your finances, get some idea of how much money you are likely to die with, and decide if you should start giving some of it away to charity and/or family now.
Same-sex couples should consult an attorney due to the complexities of estate planning in that scenario.
Letter of Last Instruction
A final document to consider creating is a letter of last instruction, also known as a “doomsday letter.” In today’s increasingly electronic world where financial statements are no longer delivered via US mail, family members may have difficulty locating all of the necessary items in the event of your death. Your letter would help in this case and should include (Ref: Clements):
- Funeral instructions
- A list of financial assets and liabilities, safe deposit boxes, and any professionals you deal with (financial advisors, attorneys, doctors, etc.)
- The location of key documents, like birth certificates, titles for cars, wills and trusts, tax returns, and financial statements
- Usernames and passwords for key websites
- An inventory of high value household items or possessions and who you want to receive them (if they are not included in your will)
Summary
Likely everyone reading this needs a will and to make sure that their life insurance and retirement accounts have the proper beneficiaries listed. In addition, those with more complex or large financial holdings, a desire to shape how and when they bequeath their assets, the need for trusts, or a same-sex relationship should consult with an estate planning attorney.
References
Clements, Jonathan. Money Guide 2015. Jonathan Clements, LLC, 2015.
Martin, Tom, Paul Larson and Jeff Larson. Doctor’s Eyes Only: Exclusive Financial Strategies for Today’s Doctors and Dentists. Brockport & Schoolcraft, LLC, 2012.
Military Times – Troops Should Expect a Big Pay Raise Next Year
Here’s a link to this article:
FY21 Milestone Note and Opportunities
Here are the FY21 milestone note and opportunities, which include:
- Chief Medical Officer (CMO)
- Director for Administration (DFA)
- Director of Dental Services (DDS)
- Officer-in-Charge (OIC)
- Senior Nurse Executive (SNE)
The deadline is 15 JUN, just as it is for XO and CO applications. The note details the application process.
The link on page 1 of the note is not working for me, but here is one that should work:
https://esportal.med.navy.mil/bumed/m00/m00c/pages/executive-medicine.aspx
I would emphasize the following portions of the note to anyone interested:
1. Applicants are to “be universally assignable and able to meet permanent change of station (PCS) parameters. Rare exceptions may be considered. Officers that are unsure if they meet PCS parameters for a FY 2021 career milestone assignment should discuss with their detailer prior to submitting an application.”
2. “Applicants who successfully screen are considered eligible for assignment to any career milestone OIC, DFA, SNE, CMO, and DDS position. Consideration will be given for the categories selected on the application; however, if slated the assignment will be based on the “needs of the Navy.” Officers who apply for career milestone screening should do so with this in mind, and be willing to accept the position for which they are slated.”
SG’s Message – The Flame That Cannot Be Extinguished
Dear Esteemed Navy Medicine Colleagues,
More than a hundred years ago, Florence Nightingale offered us the following words of wisdom: “Nursing is an art, and if it is to be made an art, it requires an exclusive devotion, as hard a preparation, as any painter’s or sculptor’s work.” The devotion to the “art of nursing” is on full display for the world to see as Navy nurses continue to answer our Nation’s call and serve on the frontlines in the fight against the COVID-19 pandemic.
As we recognize National Nurses Week and the Nurse Corps Birthday on 13 May, we celebrate the care and evidence-based practice and innovation these medical professionals bring every day to help our Sailors, Marines, and fellow Americans get well and stay healthy.
A critical component to improve the wellness and readiness of our force as we battle COVID-19 is to increase our arsenal of knowledge about the virus. In previous weeks, I discussed the dynamic efforts of the Navy Medical Research and Development (NMR&D) Enterprise in adapting to the challenges caused by this pandemic. In addition to operating within sea, air, land, space, cyberspace, and logistical frameworks, we must now fight against emerging pathogens and infectious diseases to protect America and our national security interests. To this end, our teams of scientists and researchers have been spearheading innovative countermeasures that will successfully supply us with vital data needed to operate in what Adm. James Foggo calls the “seventh domain” of warfighting – the biosphere.
Recognizing the importance of collecting medical data to help our country defend against COVID-19, Naval Medical Research Center (NMRC) recently initiated the first-ever comprehensive research study to examine the serologic, clinical, and epidemiological aspects of the virus among young, healthy populations. The aim is to support the Marine Corps Recruit Depot Parris Island’s medical mission to achieve maximum recruit health and meet graduation requirements and standards during the pandemic.
On May 4, NMRC commenced the COVID-19 Health Action Response for Marines (CHARM) study at Parris Island and the Citadel. All study findings will be provided in real-time, in an effort to inform operational leaders with actionable information to help protect our Force and preserve war-fighting capabilities and readiness. This study will help inform future decisions regarding isolation and quarantine, identify personnel infected with mild or no symptoms, and help determine when recruits can safely return to training. Additionally, we hope to grasp a better understanding of how our bodies fight the virus by obtaining blood, saliva, and nasal samples that we can use to develop or improve tests, vaccines, drugs, and other countermeasures.
The road ahead will not be without challenges, but with the expertise of our NMR&D scientists, our public health teams, and Navy medical professionals on duty around the world, we will come out of this stronger and more mission ready. Every day our scientists, nurses, corpsmen, doctors, and medical support staff actively continue to leverage the principles of rapid-cycle feedback to share lessons learned and inform future decision which help Navy and Marine Corps leaders mitigate the long-term impact of COVID-19. Through it all, the spirit and light of Florence Nightingale’s raised “little lamp” is kept alive and burning brightly because of the skill and dedication our One Navy Medicine Team brings to the fight every day.
With my continued respect and admiration, SG
V/R,
Bruce L. Gillingham, MD, CPE, AOA
RADM, MC, USN
Surgeon General, U.S. Navy
Chief, Bureau of Medicine and Surgery
Greater Emphasis on Education and Learning in FITREPs
Just one more reason to get JPME…
MILLINGTON, Tennessee (NNS) — The Navy’s recent deep dive into the value of higher education moved from idea to reality as the service will now require officer fitness reports to detail an individual’s educational and learning achievements as well as how these pursuits contributed to their unit’s mission effectiveness during a reporting period.
Announced in NAVADMIN 137/20 on May 7, this latest initiative shows Navy leadership’s commitment to the idea that career-long military learning isn’t only community or job-related technical or tactical training. Navy senior leadership wants this knowledge to be combined with higher education, a commitment to continuous learning, and the resulting critical thinking and analysis skills to build the Navy of the future.
This change is a logical next step in a path the Navy has been on for nearly two years, starting with the Education for Seapower Study which was published in December 2018.
“To deter and outfight potential opponents in a world defined by great power competition, our force of professionals is going to have to outthink them, and we can only do that through continual learning and education,” said the acting Secretary of the Navy James E. McPherson of the performance system changes.
“Our action today will ensure that our talent management system rewards officers who advance warfighting effectiveness through intellectual development and represents an important milestone as we implement our comprehensive Education for Seapower Strategy.”
According to the message, officer fitness reports must now detail what each individual in the service has done since their last report to further their education and support a culture of continuous learning. This will provide necessary information to Navy selection boards that will be directed to place an even greater emphasis on education and learning during their deliberations.
“The value that education and continuous learning brings to our Navy team is undisputed and directly supports our ability to deliver decisive naval power when called,” said Rear Adm. Jeff Hughes, deputy chief of naval personnel who oversees Navy selection boards at Navy Personnel Command. “It is imperative to document an individual’s commitment to intellectual growth in ways beneficial to the Navy, and the extent to which these achievements increase the breadth and depth of warfighting and leadership aptitude.”
The Navy updated its Navy Performance Evaluation System instruction – BUPERS Instruction 1610.10E to reflect these changes. It details where and when reporting seniors must document and assess each individual’s educational and learning achievements during a reporting period as they would things like their tactical performance or military bearing/character for example.
What will be considered includes formal education and learning such as resident and non-resident professional military education coursework, professional and academic qualifications and certifications, and civilian education courses.
Even more informal learning is encouraged, including personal reading programs that include, but are not limited to selections from the Chief of Naval Operation’s Reading List. Also, participation in discussion groups and military societies, writing in national security or military journals, as well as involvement in learning through new technologies will qualify.
This program is initially starting with the officer community based on their smaller numbers and existing educational opportunities and will be rolled out force wide once it is determined how to effectively measure the additional inputs. The continuing education of the entire force is extremely important. A full rollout will be done in a deliberate manner to ensure the Navy’s enlisted warfighters remain focused on their technical trades while balancing formal education and continuous learning. Ultimately, this program, and the continuing education it encourages is designed to ensure that the Navy is developing and deploying more capable and effective leaders and technical experts.
Exactly which trait grades and how seniors are to use the updated evaluation criteria are detailed in the message.
More information is available on these changes can be found in NAVADMIN 137/20 at http://www.npc.navy.mil.
To read about the importance of these changes directly from the Chief Learning Officer and Chief of Naval Personnel, please visit their co-authored blog titled “Education and Learning an Operational Imperative” at the NavyLive blog.
Finance Friday Articles
Here are my favorites this week:
Introducing Coverage Critic: Time to Kill the $80 Mobile Phone Bill Forever
The ‘Great Fall’ and the road to recovery
The Stock Market’s Behavior is Anybody’s Guess
Here are the rest of this week’s articles:
‘A Bargain With the Devil’—Bill Comes Due for Overextended Airbnb Hosts
A Budget With No Payments: The Dream Life
Bucket Strategies – Challenging Previous Research
Don’t Give Up On Your Small-Cap Value Strategy
Five Important Financial Goals for Physicians
How Affluent Parents Can Teach Their Kids About Money
How to spend your stimulus check
How Will the Crisis Impact Housing Prices?
Is Buying an Annuity in a Bear Market a Good Idea?
Is Buying an Annuity in a Zero Interest Rate Environment a Good Idea?
It’s Just Another Manic Market
Retire That Life Insurance Policy?
Sorry, Naysayers. Coronavirus Is NOT the End of the FIRE Movement—It’s Exactly What We Planned For!
The 1% Rule for Evaluating Rental Properties
The Importance of Finding Contentment Today
The White Coat Investor: It’s time to follow your plan
Want to Be Successful? Model Successful People (Here’s a Way)
CNO Message to the Fleet
WASHINGTON (NNS) — The Coronavirus Disease 2019 (COVID-19) Pandemic brought an invisible enemy to our shores and changed the way we operate as a Navy. The fight against this virus is a tough one. But our Sailors are tougher, and each of you plays a critical role in defeating this virus.
We have embraced the challenge of COVID-19 and are learning, adapting, and improving by the day and by the hour. There is no better example of this than our actions and response on the USS Kidd (DDG 100).
As we continue to learn about this virus and how to mitigate its risk, the widespread public health measures you are actively, practicing–physical distancing, face coverings, minimizing group events, frequent hand-washing, sound sanitation practices, a questioning attitude on how we are feeling – -must be our new normal. We must harden our Navy by continuing to focus on the health and safety of our forces and our families. The health and safety of our Sailors and their families is, and must continue to be, our number one priority. Fleet operations depend on it.
As the forward deployed force of our country, we have a duty to ensure we are ready to respond. We cannot simply take a knee or keep everyone in port until this enemy is defeated. We are America’s away team. The uncertainty caused by COVID-19 makes our mission of protecting America at sea more important than ever. That is why the U.S. Navy continues to operate forward every day.
As state and local officials begin to re-open communities, we must continue to focus on the health and safety of our Sailors and their families. It is vitally important for every individual to take personal responsibility to minimize risk to themselves, to their loved ones, as well as to the members of our team who may be more susceptible.
Each Fleet, region and installation will be on a conditions-based timeline to open. OSD and Service guidance will be released to assist Commanders in making these decisions. When we entered this pandemic, we quickly closed down services to minimize interactions and the spread of the disease. We will need to take a measured approach to opening up these services to prevent a recurrence of the disease. I expect local commanders to understand area conditions and to communicate prudent expectations and guidance up and down the chain of command. I trust our Sailors to follow these guidelines.
Each of us must continue to practice and follow all public health measures necessary to minimize risk to our force and our families. Take responsibility. Show courage in speaking up if you see shipmates falling short. We have obligations for operational readiness and stringent requirements for health protection measures.
Continue to gather lessons learned at all levels, and prepare for another wave of COVID so that we can minimize the impact and be prepared, if that happens.
While I know we are asking a lot of our Sailors and families right now, with measures such as extended deployments and pre-underway Restriction of Movement (ROM) periods, these sacrifices are necessary to maintain a healthy force around the world. I appreciate your commitment to selfless service.
I know our Sailors’ ability to adapt and respond has been nothing short of amazing and I am grateful. Your resiliency gives us all hope and assurance during these uncertain times.
Happy Nurses Week – Newest Nurse Corps Admiral is RDML(s) Cynthia Kuehner
The latest admiral is RDML(s) Cynthia Kuehner:
https://www.congress.gov/nomination/116th-congress/1767?s=1&r=49
In addition, here is a message about Nurse’s Week from the ASD(HA):
MHS Team:
Tomorrow marks the start of National Nurses Week. As we celebrate the long history of military and civilian nurses who have served our nation, we recognize the unique contributions nurses have made – and continue to make – to military medicine in both peacetime and wartime. This year, Nurses Week coincides with the 200th anniversary of nurse pioneer Florence Nightingale’s birth, further reminding us of the critical role nurses play in our national life.
To the dedicated nurses across the Military Health System: thank you.
Thank you for your service to the nation, working to keep our forces ready to answer the call, anywhere and anytime. Thank you for serving our 9.5 million beneficiaries – whether across our military hospitals and clinics, in our research laboratories, in our military medical classrooms, or in the office performing data analytics. Thank you for serving on the front lines in the fight against COVID-19, directly delivering on Secretary Esper’s priorities to protect our people, maintain readiness, and support the national response. Thank you for your enduring commitment to protect, promote, and improve military health care and readiness every day, building a stronger, more effective Military Health System for those depending on us.
To the MHS team: thank a nurse this week and recognize them for their efforts – big and small – that are so integral to caring for our patients and advancing our mission. Share their successes through photos, comments, or stories, on MHS social media platforms using the hashtags #NursesWeek, #YearoftheNurse, and #MHSNurses. And be sure to visit the Nurses Week spotlight page on Health.mil to learn more about how our nurses are going above and beyond the call of duty every day:
Tom
Thomas McCaffery
Assistant Secretary of Defense for Health Affairs
Aide de Camp for LTG Place (DHA) – O4
LTG Place is looking for a new Aide de Camp. This is open to an O-4 from any Corps; the PD is here. Candidates must be PCS eligible to Falls Church, Virginia and report NLT Jan 1, 2021. If Medical Corps, they should be post-residency training and preferably in an overmanned specialty. Packages should be submitted to CAPT Anthony Keller NLT 1 July 2020 (contact is in the global) and should include CV, Bio and OSR/PSR (single PDF file) along with PERS’ concurrence for the move.
Joel Schofer's Career Planning Blog 