Should a Child Be My Life Insurance Beneficiary?
Children can be named as the beneficiary on a life insurance policy. However, the insurance company will not send a large check to a three year old child. There are several ways this can be handled. One option is the insurance company will hold the money until the child turns 18. Another option is the probate court can establish a legal guardian for the child, then the court papers can be filed with the insurance company and the guardian will receive the money on behalf of the child. To make sure your children receive the benefit, establish a trust and guardian for the children now, and list the trustee as the beneficiary. These are simple legal documents that can be drawn up with your will at a minimal cost. These documents will also say who will raise your children and who will have control of their money, keeping the courts out of that important decision
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