It looks like the Lively-Reynolds family has already won Halloween

Blake Lively's two-year-old has the most hilarious costume ideas for her sister...

From the editors of InStyle US Words by Lara Walsh

Every princess needs a talking animal sidekick, and for Blake Lively's two-year-old daughter James, that role falls to her baby sister Ines.

While speaking to People about the family's Halloween costumes this year, the Gossip Girl alum dished on the hilarious suggestions her eldest daughter has for her most recent bundle of joy, whom she welcomed last September with husband Ryan Reynolds.

'My daughter suggested that our youngest should be Mike Wazowski, so I thought, "Great, we are all going to get to be different characters from Monsters Inc.,"' the All I See Is You actress explained, before revealing that the toddler had another option for herself in mind.

She continued, 'But then she suggested the baby be Mike and that she gets to be Cinderella' or '[James] gets to be Moana and the baby gets to be Hei Hei.'

Even when it comes to famous Disney sisters Elsa and Anna from Frozen, Lively says her youngest still gets the short end of the stick.

'She gets to be Anna, and so you would think the baby gets to be Elsa,' the mother-of-two hilariously revealed. 'No, the baby gets to be the gecko from Tangled.'

She concluded: 'Basically, the baby gets to be the goofy animal sidekick, while our daughter gets to be the princess.'

Princesses or not, we're sure both of Lively's daughters will look adorable this Halloween!