A minor can be named as a beneficiary of a life insurance policy in Florida. However, doing so could result in any monies that the minor were to receive being held by a guardian of the property for the minor until such time as the minor reaches the age of majority. This is true even if the minor child’s parents are still living. Appointing a guardian of the property for a minor is often an unwanted and easily avoidable expense. There is a $15,000 de minimis exception that may prevent the necessity of having a guardian of the property appointed and allow the minor to receive sums of money outright in certain circumstances. One option which would allow you to avoid a guardian of the property being appointed to hold the life insurance monies the minor will receive would be to set up a trust for the life insurance money to be funded into upon your death. The trustee of the trust would manage and disburse the money pursuant to your instructions. A parent is not required to serve as the guardian of the property or trustee for a minor child. The estate and income tax consequences upon your death both on the federal and state level are largely dependent upon your particular facts and circumstances and not something that I am able to answer on this forum. I would be happy to discuss all of the above in greater detail with you. Please call my office at (352) 365-2262 to schedule an appointment.
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