Can I name a minor child as my life insurance beneficiary in Nevada?

You can name a minor child as a life insurance beneficiary, but doing so without additional planning creates complications. Life insurance carriers cannot legally pay death benefits directly to minors. If a minor is the named beneficiary and both parents are deceased, a court will typically appoint a legal guardian to manage the funds—a process that is expensive, time-consuming, and results in court supervision of the child's inheritance until they reach 18.

In Nevada, there are better approaches. One option is naming a custodian under the Uniform Transfers to Minors Act (UTMA), which allows an adult custodian to manage the funds until the child reaches 18 or 25 (depending on your designation). Another option—often preferable for larger policies—is establishing a trust and naming the trust as beneficiary. A trust allows you to specify exactly when and how the funds are distributed, who manages them, and for what purposes.

For policies intended to provide for children's education, living expenses, or long-term support, a trust typically offers the most control and protection. Many parents with young children coordinate their life insurance beneficiary designations with their overall estate plan.

Agents in our network can explain the insurance side of these arrangements, while estate planning attorneys can help establish the appropriate legal structures for your family's situation.