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.”
When a military member dies, their estate is handled according to their will, or if they don't have one, according to the laws of the state they're domiciled in. If there's no will, the Uniformed Services Former Spouses' Protection Act (USFSPA) allows for a portion of the military member's retirement pay to be divided between the service member and their spouse, but this doesn't automatically transfer other assets like life insurance or pensions.
The concern here is that without a clear will or beneficiary designations, there's a risk that assets could be contested by other family members, as the stepdad's child from another relationship worries. This is a common issue in blended families, where step-relationships and biological relationships can create competing interests. In the absence of a will, state intestacy laws will dictate how assets are distributed, which may not align with the deceased's wishes.
To watch next: it would be wise for the mom to consult with a financial advisor or estate planning attorney who has experience with military families to review the stepdad's estate plans, will, and beneficiary designations. They should also consider gathering relevant documents, such as the stepdad's will, trust, life insurance policies, and military pension information, to ensure a smooth transfer of assets and minimize potential disputes.
Originally reported by marketwatch.com. FundNews adds analysis for finance & markets readers.