Military Officer - April 2006 - (Page 22)

rapidfire Survivor Benefit Plan and Taxes oes SBP cause an estate tax problem? Many MOAA members want to know if the present value of SBP is includable for estate tax calculations. The answer, as with many things in life, is, “It depends.” Depending on your retirement date, the present value of the SBP annuity may be totally excluded, partially excluded, or fully included for estate tax purposes. Even if the present value of the SBP is includable, it may qualify for the unlimited marital estate tax deduction. If the election of “spouse only” is made and the spouse is a U.S. citizen, then the entire present value of the SBP annuity qualiﬁes for the unlimited marital deduction (no special election is made). If the “spouse and child” election is made, then the present value of the SBP annuity qualiﬁes for the marital deduction as qualiﬁed terminable interest property. If the election is “child only,” then the present value of the SBP annuity is not protected by the unlimited marital deduction and may be partially or fully includable in the gross federal taxable estate. If the spouse is not a U.S. citizen, then the SBP does not qualify for the unlimited marital deduction unless it is passed by a qualiﬁed domestic trust. Please seek specialized legal and tax assistance if this applies to your situation. RESOURCES ■ For a chart detailing the amount of SBP includable for estate tax purposes, visit MOAA’s Web Base at www.moaa.org, click on Financial Center under Services, and click on Financial Center FAQ. A New Jolt D T he Army is now offering its soldiers some added punch to combat fatigue, with Stay Alert caffeine gum. Each piece of cinnamonﬂavored gum contains 100 mg of caffeine, about the amount found in a 6-ounce cup of coffee. The gum, tested at the Walter Reed Army Institute of Research, was found to be a safe method of improving alertness and physical and mental performance. Because it’s absorbed through tissues in the mouth rather than the stomach, it delivers caffeine to the body four to ﬁve times faster than a liquid or a pill. The DoD Combat Feeding Program of the Natick Soldier Center in Massachusetts also tested and approved the gum to become part of the experimental “First Strike Ration,” the lightweight ration designed for Special Operations forces. In 2004, 300 cases of the gum went to soldiers in the ﬁeld, including in Iraq and Afghanistan, and it is now available to all military personnel. Tee Time Join us for the 3rd Annual MOAA/Jeff Peck Memorial Golf Classic May 16, 2006, at Westfields Golf Club in Clifton, Va. MOAA members, government and uniformed services leaders, and corporate sponsors support the MOAA Scholarship Fund through this popular event. This year, MOAA will provide financial assistance to more than 1,500 college students who are sons or daughters of military servicemembers. >> RESOURCES: For more information or sponsorship opportunities, contact Capt. John Plehal, USN-Ret., MOAA’s deputy director for Professionalism, at (800) 234-6622, ext. 530, or johnp@moaa.org. 22 MILITARY OFFICER APRIL 2006 PHOTOS: CLOCKWISE FROM TOP LEFT, JOSE L. PELAEZ/CORBIS; STEVE BARRETT; NANCY WOODWORTH CARR http://www.moaa.org

Table of Contents Feed for the Digital Edition of Military Officer - April 2006

Military Officer - April 2006 Contents From the Editor President’s Page Your Views MOAA Directory Rapid Fire Washington Scene Financial Forum Ask the Doctor Chapter Activities Lap of Luxury Magic Carpet of the Rails Blue Ridge Wonderland Salud, Santé, Cin Cin! Cover Story: Wounded Warriors On Duty MOAA Scholarship Donors MOAA Member Services Pages of History Information Exchange Member Books MOAA Calendar Advertising Index Sounding Taps Encore

Military Officer - April 2006

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