Can I List a Minor as Beneficiary in My Will?

A legal minor typically should not be named as a beneficiary in a will or other legal documents as the sole method of ensuring the distribution of assets. However, every state has its own estate and property laws, and the definition of a legal minor varies between states. By definition, legal minors are children who are unable to handle legal matters or enter into contracts since they have not reached the age of majority (typically 18 -21 years). Due to these limitations, legal minors cannot receive assets through legal documents or contracts except through trusts. 

The best way to ensure that legal minors receive assets is to name them as beneficiaries in a trust. Legal minors can be listed as beneficiaries on a trust, but not in legally enforceable documents such as wills, because trustees manage all of the assets in the trust and distribute them according to the terms of the trust. Also, trustees handle these distributions on behalf of the beneficiaries named in the trust. This means the trust’s beneficiaries never participate in financial or contractual transactions. 

Although it is possible to list a legal minor as a beneficiary for some estate planning components, such as life insurance, this does not mean the minor will receive the assets or benefits following the parent or guardian’s death. A legal minor listed as a beneficiary in these contexts will typically have an adult custodian responsible for managing the assets until the minor has reached the age of majority. Thus, a legal minor will not receive any proceeds unless they have attained the age of majority by the time the death has occurred and the will has been filed for probate. 

While most experts recommend transferring assets to minor children through a trust, every situation is different, and additional considerations may need to be addressed. It is highly encouraged to work closely with a legal professional to ensure all estate planning components are complete. Additionally, working with legal professionals specializing in estate planning will guarantee that the guidance and actions taken are specific to the estate’s circumstances, which is especially helpful for those with extensive assets or who need assistance navigating complex arrangements. 

Sources

“Can a Minor Be a Beneficiary?” SmartAsset. https://smartasset.com/estate-planning/can-a-minor-be-a-beneficiary 

“Beneficiary Strategies: Your Children”. Fidelity. https://www.fidelity.com/life-events/estate-planning/beneficiary-strategies/child 

“Can a Minor Be a Life Insurance Beneficiary?” Aflac. https://www.aflac.com/resources/life-insurance/can-a-minor-be-a-life-insurance-beneficiary.aspx