Best beneficiary designation for IL

Can you provide the best beneficiary designation for a married couple with two children? We are in our mid 30's children are under 10. Currently everything is left to the other spouse as primary, secondary is children at 50% each. What do you know about using the "Estate of 'Named Person'"? Thanks inadvance. We live in IL.

You are looking good. If those are your intended beneficiaries, do not name your 'estate.' That will cause the property to 'go through probate' & may also prohibit your survivors from being able to roll over the IRA's causing adverse income tax consequences. A full answer depends on many factors, but suffice it to say that naming your estate is almost always a bad idea.

Are you talking about life insurance? A 401k? A will?

You should have a Will that includes a basic trust to hold money for the kids until they reach an appropriate age (beyond 18) as non-adults can't take property so if it goes to them directly, the court holds it for them and they get it at 18 and buy a car and super sound system.

Then for the insurance you could name the trustee for the kids under your will and thus add the insurance or 401k proceeds and the trustees would add and hold the money for the kids and be able to pay the kids' expenses, tuition, etc. with the money going to them upon age 25 or college graduation or what ever event you set for them to take control.

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