Naming a child as your life insurance beneficiary is a big decision. You want to make sure they are cared for if something happens to you, but depending on the provisions of the policy and North Carolina laws, special rules apply when it comes to minors receiving life insurance payouts.  Understanding these rules and how they may directly affect those you love is key to making sure your child’s future is secure.

Without the right structures in place, such as a trust, you could face unexpected complications, including court-overseen guardianships.  Many times, they are required in order for your child’s funds to be released, and unfortunately, the time and cost involved cannot be avoided.  There are legal mechanisms available to avoid what otherwise is mandatory, but these options must be properly set up in advance in order to be effective in the future.

This blog will explore how you can protect your child’s financial well-being, avoid lengthy court processes, and ensure they receive the support they need when it matters most. Understanding these options now can save you and your family from potential difficulties in the future.