Who should I make my beneficiary?

Factual Questions
1

I am a divorced father with 3 kids and a decent relationship with my ex-wife. I have a substantial life insurance policy as well as a fair amount of savings in my 401(k). Does it matter if I name the kids or their mother as beneficiary? I trust my ex-wife to do the right thing with the money. She would need the money to replace child support that would be lost in event of my death.

I am more concerned with tax consequences which are none (?) with the life insurance. What about the 401(k)?

Are there drawbacks to leaving it to the kids? I understand they could spend it all when they are of legal age. How would it affect college aid?

I am looking for any facts that would support giving it to one or the other. Maybe I should split it among the two groups. I don’t have any emotions attached to the issue. I just want to provide the best lifestyle/future for my children.

2

Me.

Leave it all to me.

After all, who would appreciate it more?
And let’s face it, all the other have given you static at one time or another.
I never have.

Leave it to me.

3

Regardless of how much you trust your ex, the only way to guarantee the money is for the benefit of your children is to leave it to them. You can set up a trust; I suppose you could make your ex the trustee if you really want. IANAL but I suggest you talk to a lawyer who specializes in estate planning. If you don’t have a will you need one of those too. Your 401(k) is just the tip of the iceberg.

4

There are possibilities, but you should talk to a financial planner or an estate planning attorney about it.

One possibility