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Your insurance agent should take you through these steps. What I am telling you is addressed better by your own personal agent who should be aware of all of your particulars. Assuming that there is nothing special in your case, we would proceed thusly. NB: There is something special, but I am going to ignore it for now.

1. We meet with an attorney of your choice to draw up wills for you and your husband. The will will appoint a guardian for your children in the event that neither you nor your husband survive to their majority. Further the will will establish a "Testamentory Trust" to hold assets for your minor children until they reach an age that you may specify (or other condition(s) you specify). Further, the will will appoint a "Trustee" for the testamentary trust. For that job, you may want to lean to appointing whomever you named as guardian.

2. On the Beneficiary statement on the insurance policies, you and your husband name each other as primary beneficiary. Then you add a phrase appropriate to your situation like, 'and as contingent benefifiary, I name the Testamentory Trust created by the Last will and testament...'

How the Trust will work: It will work within the rules and restrictions that you and your husband place on it. It will be managed by the person or institution you name as trustee, and will be monitored by the courts. While I would lean toward allowing flexibility; it is your money, your trust, your children, and your rules. Your attorney will help you.

Now the special thing that I have ignored up until now. The answers here will affect the path to take. If both you and your husband should die before your children reach majority, where and in what circumstances do you want them to live? Who specifically would you and your husband appoint as Guardian to them?

The way to solve potential problems in this area is to choose an attorney that feels comfortable addressing them.

Hope this helps.

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