The short answer is no! If a minor child is a beneficiary of your insurance policy or other financial assets, it is generally necessary to appoint a guardian to manage the funds on the child’s behalf. This is because, in most cases, children are not legally competent to manage financial assets until they reach the age of majority, which is typically 18 or 21.
The guardian will be responsible for using the funds for the child’s benefit, such as for their education, healthcare, and general maintenance and support. The guardian should keep careful records of all expenditures and be prepared to account for the use of the funds by the court or other authorities if necessary.
It is important to choose the guardian carefully, as they will be responsible for making important decisions on behalf of the child. The guardian should be someone the child knows and trusts and can manage the funds responsibly and ethically. It may be a good idea to discuss the appointment of a guardian with the child and get their input if they are old enough to understand the process.
In some cases, it may be easier to set up a trust to hold the insurance proceeds or other assets for the minor child’s benefit. A trust can provide additional protections and safeguards to ensure that the funds are used for the child’s benefit and are not misused or wasted. A trust can also allow the child to receive the funds at an earlier age or in stages rather than all at once when they reach the age of majority.
Working with an attorney specializing in estate planning to set up guardianship or trust for a minor child is generally a good idea. They can help you understand the laws and options in your state and create a plan that meets your goals and your child’s needs.
Contact us today at the Lundy Law Group to see how we can help protect your loved ones’ assets from individuals you don’t want to care for them in your absence.