What is recommended regarding minors as beneficiaries under life insurance policies?

Choosing a trust as a means to benefit minors in life insurance policies is considered a prudent approach. When a minor is named as a direct beneficiary, they cannot legally manage the funds until they reach the age of majority, which can lead to complications and delays in accessing the funds. By establishing a trust, the life insurance proceeds can be managed by a trustee on behalf of the minor until they are old enough to handle the money responsibly. This approach ensures that the funds are used in a manner that aligns with the intent of the policyholder, providing for the minor's needs, education, or other specified purposes.

Additionally, a trust can offer protection from creditors and ensure that the assets are distributed according to the policyholder's wishes, providing greater control over the disposition of the proceeds. This strategy is thus recommended for safeguarding the interests of minors as beneficiaries in life insurance policies.