Survivor Finances and Legal Affairs

While nothing can take away your pain following the death of a loved one, having your financial and legal affairs in order can provide some peace of mind during this difficult time. Military OneSource offers tools and services to simplify and ease your burden.

When a loved one dies, you may go through a court proceeding called probate — the legal process during which a person’s final debts are settled and legal title to property is passed from the deceased to heirs. Since the probate process can be overwhelming, it may help to remember these steps:

1. The probate hearing
2. Collection and inventory of assets
3. Review and payments of bills, taxes, expenses and creditors
4. Formal transfer of remaining estate property

Taxes might not be on your list of things to think about following the death of a loved one. But they may be entitled to certain benefits — including tax forgiveness.

Any final bills, debts, taxes or claims against the deceased are reviewed for their validity and then paid with funds from the estate. You are not personally responsible for paying these expenses, even if estate funds are not available.

A critical step in organizing your finances after a death is understanding your Social Security benefits. Several of the benefits paid out to families of deceased service members are tax-free. These include Social Security benefits, death gratuities, burial benefits and Department of Veterans Affairs pension and compensation payments.

In addition to the Social Security lump-sum death payment, there are other monthly benefits available to eligible surviving family members. Visit Social Security Administration Survivors Benefits for details.

As a survivor, you may be entitled to receive Survivor Benefit Plan payments. The amount you receive is based on the number of active-duty service years your service member had at the time of their death. You may want to know about Servicemembers’ Group Life Insurance, for which a service member may have paid premiums from their monthly income.

The Defense Finance Accounting Service simplified the eligibility verification requirements and forms in August 2023. Now, Survivor Benefit Plan annuitants will only need one eligibility verification each year.

Mapping your financial future can be a puzzle when you’re trying to figure out benefits. Be sure to use the interactive Online Survivor Benefits Report to view current and estimated future benefits and to get help with creating savings and spending plans.