Planning basics
Naming a minor child as your life insurance beneficiary in NJ
If a child could receive insurance proceeds while still a minor, the beneficiary wording deserves legal review. Insurers generally won’t pay large amounts directly to a minor.
A trust or custodial arrangement lets someone you choose manage the money. Your attorney can help pick which fits your family.
Who this is for
- Parents and grandparents naming children
- Anyone whose divorce order requires coverage for children
Your will doesn’t control your beneficiary form
Life insurance is paid according to the policy’s beneficiary designation, not your will. A trust named in your will doesn’t receive the proceeds unless the beneficiary form points to it.
Trust or custodian: two ways to manage the money
| Option | How it works | Consider |
|---|---|---|
| Trust | A trustee manages funds under terms you set | Most control over timing and use; must be drafted |
| Custodian (Uniform Transfers to Minors Act) | A custodian manages funds until the age the law and transfer terms set | Simpler; the child gets full control at that age |
| Naming the minor directly | A court may need to appoint someone to manage the money | Delay and cost; usually avoided |
The age a custodianship ends depends on New Jersey law and how the transfer is set up. Confirm with your attorney.
Beneficiary designation check
| Question | Yes / No |
|---|---|
| Is any primary or contingent beneficiary under 18? | |
| Is a trust or custodian named for them? | |
| Does the trust named actually exist and match the form? | |
| Does a divorce order dictate the beneficiary? |
What to bring to the review
- Current beneficiary forms for every policy
- Any trust documents
- Divorce requirements, if any
- Who you’d want managing the money
Mistakes that cost people later
- × Naming a minor directly.
- × Assuming your will controls the policy.
- × Naming a trust that was never actually created.
- × Forgetting contingent beneficiaries.
Questions people ask
Can I name my child directly?+
You can, but a minor generally can’t receive large proceeds directly, so a court-appointed manager may be needed.
Would a guardian receive the money?+
A guardian of the child isn’t automatically entitled to manage the child’s money. A trust or custodian avoids that gap.
Should I use a trust or a custodian?+
A trust gives more control; a custodian is simpler. Your attorney can advise.
When would my child gain control?+
Under a trust, when its terms say. Under a custodianship, at the age set by law and the transfer.
Does my will control the insurance beneficiary?+
No. The beneficiary designation on the policy controls.
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Start a Life Planning ReviewRelated planning topics
Life insurance required by a New Jersey divorce or support order
Court-ordered coverage? Match the policy to the order’s exact wording.
New Jersey inheritance tax and life insurance: who pays, and how to plan
Leaving money to a sibling, niece or nephew? Pay NJ inheritance tax with exempt insurance dollars.
Kevin Brown, licensed New Jersey insurance producer (#3003694894)
Kevin Brown Insurance Agency, South Plainfield, NJ. You work with Kevin directly on every life case. Updated November 2026.
Coverage, policy features, premiums and underwriting requirements depend on the insurer, product, applicant and state availability. Approval is not guaranteed. Illustrations are not promises of future performance. Kevin Brown Insurance Agency does not provide medical, legal or tax advice. Consult your attorney or CPA about your circumstances.