Fiction: I should name my estate as the beneficiary of my IRA/life insurance.

Fact: The reality is a lot of people name their estate as the primary beneficiary of their IRA, life insurance, and annuities. Since estates generally pay higher taxes than individuals, this type of planning can have serious tax consequences. Moreover, those assets are forced to pass through your estate, rather than to your intended beneficiaries, and will be subject to probate.


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