What is the name of your state? Va
My husband and I recently made our will and the lawyer included a trust for our 7 year old child. He advised us to put "estate" as our contingent beneficiary on insurance and 401K forms, so payment will be made to our child before she is 18. I have researched this a little, and believe that this is the worst thing we could do, since it would put the funds into probate and open to estate taxes and fees. I also read that we should not put the trust as the contingent, due to insurance red tape regarding proof of the will and trustee. My question: Can I just put the trustee as contingent (without designation as trustee) and let her put the funds into the trust on her own? I have read that she would not have to pay any taxes on it, so I do not see any drawbacks to doing it this way. Thanks.What is the name of your state?