The Unseen Financial Battle: How Invisible Wounds Impact Long-Term Wealth

Service-connected mental health conditions, which include anxiety, depression, PTSD, and other forms of invisible injury, not only negatively affect how a veteran lives their day-to-day life; they can also negatively affect the long-term legacy of the veteran and their family. However, the negative effect of these conditions on long-term legacy can be felt for multiple generations if not treated.

The Wealth-Eroding Effect of Unrecognized Mental Health Issues

Mental health challenges influence more than emotional well-being. They can quietly derail financial plans, disrupt business decisions, and leave estate planning incomplete. Veterans who have built substantial assets face a unique vulnerability when the costs of their injuries are not fully understood or recognized by the systems meant to support them.

Unmanaged symptoms can lead to decreased productivity, impulsive financial choices, or neglect of critical long-term strategies. Some high-net-worth veterans withdraw from active financial management altogether, handing over control without clear safeguards in place. Others delay vital updates to trusts, beneficiary designations, or business succession plans.

The result? Wealth becomes fragile, even in abundance.

Estate Planning: The Intersection of Mental Health and Wealth

Ignoring a veteran’s mental health issues can have serious consequences for their estate planning. A veteran may delay creating a will or fail to update their will following a significant event in their life, i.e., marriage, divorce, death of a spouse, etc. They may also fail to execute durable powers of attorney, healthcare directives, or other protective measures to ensure that their loved ones are protected during periods of crisis involving either their physical or mental health.

Many veterans are unaware of the fact that a service-connected mental health condition may entitle them to significant disability compensation. Receiving disability compensation can affect a veteran’s tax planning and long-term care funding options, as well as the veteran’s eligibility for various legal protections afforded to them through federal and state laws.

Because a service-connected mental health condition has not been documented as required by the Department of Veterans Affairs (VA), many families may miss out on additional benefits, including burial benefits, survivor pensions, dependency and indemnity compensation, and others.

Increasing Disability Rating: An Important Step in Protecting Financial Security

High-net-worth veterans often believe that they have too much income to receive additional VA benefits, or they believe that their existing disability rating is the maximum rating to which they are entitled. However, attempting to increase disability rating, particularly for service-connected mental health conditions, can provide them with access to additional resources that can contribute to their overall financial security.

Ways to Protect Your Wealth and Legacy

To minimize the impact of your mental health injuries on your wealth and legacy, you and your family can take several proactive steps:

• Work with your financial advisor, estate attorney, and healthcare provider to develop a comprehensive, confidential wealth management plan that addresses both your financial well-being and your mental health.
• Regularly review your estate documents, including your will, trust, and powers of attorney, to ensure they continue to meet your evolving financial and personal circumstances.
• Consider using your VA benefits strategically. By maximizing your disability rating, utilizing caregiver benefits, aid and attendance allowance, and taking advantage of your service-connected entitlements, you can enhance your quality of life and preserve your private wealth.

The financial wounds of war are not always visible, but they are very real. For high-net-worth veterans, treating service-connected mental health conditions isn’t just a medical issue. It’s a strategic financial move. With thoughtful action, it’s possible to protect what’s been built and pass on not just assets, but resilience and wisdom.