Should I Name My Estate as Beneficiary?

This measure should only be considered in very unusual and specific situations. By naming your estate as beneficiary, you expose the proceeds of the policy to potential state inheritance and federal estate taxes. Additionally, creditors now have access to the funds since many states protect beneficiaries such as spouses, children, siblings, etc., but not an insured’s estate. Your state of residence and personal financial situation must be considered, but naming a specific individual or organization as beneficiary will help ensure they receive the policy benefits while limiting tax liabilities. See more frequently asked term life insurance questions.