Suppose you have children in your life who are very important to you:  your own, or a grandchild, niece, nephew, godchild – even the children of friends.  And perhaps you would like these children to receive a portion of the proceeds of your life insurance or your retirement account.

You might be wondering:  is it legal in California to name a minor child as a beneficiary?

This answer is, yes, you may name a child as beneficiary, but since the law does not recognize children as legally able to manage their own financial affairs, you must also designate a “guardian of the estate “to watch over the bequeathed assets or property until your proposed beneficiary is of age.  In California, the age of majority is 18.

There are other ways in which you might choose to designate assets to minors.  For instance, you can establish an account to benefit a minor child under UTMA – the Uniform Gifts to Minors Act.  Once again, though, you will need to establish a legal custodian for the UTMA account to hold or supervise the assets in the account until your designated beneficiary reaches 18.

Another option:  You could create a trust for the benefit of a child or children.  A trust gives you more flexibility, in that you may name the age(s) or circumstance(s) in which you wish the recipient to inherit the assets.  However, in this instance, you are required to name a trustee.  This differs from a guardianship in that your trustee is empowered to administer the trust even after your minor beneficiary becomes an adult.

There are certainly many ways to direct your generosity toward the important children in your life.  Each carries its own set of specific legal requirements.  But whatever your choice, the help of an experienced estate planning attorney can be invaluable.  Its practically the only way to assure that your directions and wishes are legally established and correctly executed.

For help with your questions and concerns about beneficiaries or bequests, or for any other estate planning matters, please contact us at 818.956.9200.

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616 E. Glenoaks Boulevard, Suite 203

Glendale, CA 91207

Sherman Oaks Location

15303 Ventura Boulevard, Suite 900

Sherman Oaks, CA 91403