Beneficiaries -NWR

Do you mean beneficiary of an insurance policy?

If you mean beneficiary of an insurance policy, pension, or similar account, that's a serious estate and tax planning question, and possibly a family law issue. Talk to a lawyer to figure out what's best for you. Us Internet strangers aren't going to be able to help you make this decision.

My parents left me and my sister as beneficiary because they can't control their spouses and wouldn't want to see us get screwed over if they died and all the money went to the spouse with the idea it would then go to us.

If you're talking about a work policy, I would also check their requirements. I've seen a few places that require the spouse to the beneficiary unless they sign a waiver.

My understanding is that for retirement benefits, your spouse is the default beneficiary, and if you want someone else to be the beneficiary, your spouse would have to give their consent. Also, if your children are minors, I'm not sure they can be the beneficiaries legally. I agree with Coffee that this is something you should think about and possibly consult a probate or family attorney. Another thing to consider is naming a guardian for your children in the event that something happened to both parents (or you if you are the only fit parent).

Yes. I should have clarified. I mean for my life insurance policy but also my retirement as I am about to have to roll over my IRA but I also have 401. I am just looking to see or get ideas about what others have done and why.

Go speak with an estate planning lawyer. Why: everyone's situation is different. Especially with blended families.