Life · Chapter 6 · Beneficiaries
Distribution to a Minor / Trust
Definition
Insurers generally will NOT pay proceeds directly to a minor (no legal capacity) — a guardian or trustee is appointed, or the insurer holds proceeds at interest until majority. A trust is the most advantageous designation for a minor. Testamentary trust = created at death by will; inter vivos (living) trust = created during life.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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