Can My Daughter Inherit Life Insurance if She’s Still a Minor?

Dear Penny,

I’m a single mother, and I’m trying to best plan how to protect my daughter if I were to pass. I have a life insurance policy, but it’s only $10,000. Her 529 plan is only 2 years old, and I have my own small savings as I’m starting my career.

If anything were to happen, I want to make sure that only she has access to any money. I have to make sure that she’s safe. How can I ensure she will receive it all, and with no “oversight” or guardian in charge of it?

-Single Mother

Dear Single,

A minor generally can’t take control of property until they reach the age of majority. That’s 18 in most states. But oversight isn’t a bad thing.

In fact, the person who’s responsible for managing the money — be it a property guardian, an account custodian or a trustee — would have a fiduciary duty. That means they’d be legally obligated to put your daughter’s interests ahead of their own. The role is to keep that money safe and make sure it’s used for your daughter’s benefit.

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Think carefully…

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