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Should I name my minor child directly as a life insurance beneficiary?

Generally no. Minors cannot legally receive or manage a large sum of money directly, so if you name a young child as beneficiary, a court will appoint a guardian or conservator to control the funds until the child turns 18, an expensive and rigid process. Worse, the child then receives the entire amount outright at 18, an age when few are ready to handle a big payout. Better options are to name a trust for the child's benefit as the beneficiary, or to set up a custodial UTMA arrangement. A trust lets you dictate when and how the money is used, such as for education, and delay full access until a more mature age. Coordinate the beneficiary designation with your overall estate plan.

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