How should Nevada minors receive life insurance proceeds?

Minor children (under 18 in Nevada) cannot legally receive life insurance proceeds directly. If a minor is named as a beneficiary and receives a death benefit before reaching adulthood, the court must appoint a guardian of the estate to manage the funds until the child reaches age 18—a costly and time-consuming process that delays distribution.

Nevada law provides several alternatives to avoid guardianship complications. Naming a custodian under the Nevada Uniform Transfers to Minors Act (UTMA) allows proceeds to be managed by a named custodian until the child reaches a specified age (up to age 25 in Nevada). This is simpler than a guardianship but provides less control over how funds are used.

A testamentary trust (created in your will) or a living trust can receive life insurance proceeds for minor beneficiaries and distributes funds according to the trust terms—potentially providing income for education, controlled distributions at specific ages, and professional trustee management.

Many parents name their spouse as primary beneficiary and the trust or UTMA account as contingent beneficiary, activating the contingent designation only if both parents pass. Coordinate your life insurance beneficiary designations with your will and any trusts to ensure all plans work together consistently. Agents in our network recommend working with a Nevada estate attorney to coordinate life insurance and estate planning for families with minor children.