Q&A

Can a beneficiary be younger than 18?

Can a beneficiary be younger than 18?

Minors in California (people under the age of 18) cannot own assets directly. Minors must own assets through a guardian. The bottom line: minors can be Trust beneficiaries, but it may not be wise to distribute a large sum of money to an 18-year-old.

Can a father be a beneficiary?

You can name anyone as a beneficiary, not just a spouse: Parents, children, siblings, a special-needs niece, close friends, your unmarried partner or anyone else.

Can you put a child as a beneficiary?

If minor children have been named as the beneficiary of your life insurance policy, then it can become legally complicated. Minor children cannot directly receive the proceeds of a life insurance policy. Instead, the state would appoint a legal guardian if you hadn’t done so, which is a lengthy and costly process.

Can a nonperson be an EDB beneficiary?

In other words, an EDB cannot be a nonperson entity—such as a trust, an estate, or a charity; these are considered not designated beneficiaries. There are five categories of individuals included in the EDB classification:

Can a child be the primary beneficiary of an IRA?

If you want more control, instead of naming a child as the primary beneficiary of your IRA, you could a) name a qualified see-through trust as the primary IRA beneficiary and b) name the child as the primary beneficiary of that trust.

Can a will maker gift to a beneficiary?

If the anti-lapse law doesn’t apply because the beneficiary was not a blood relative covered by the statute, the statute may state that the gift goes into the residuary estate. Otherwise, the gift will go to the will-maker’s heirs.

What happens if there is no will and no beneficiary?

That means spouses are not covered. So if the will leaves everything to the surviving spouse and doesn’t name an alternate beneficiary, children from the surviving spouse’s previous marriage would not inherit. Instead, the property would pass as if there were no will.

Who are the beneficiaries of a direct gift to a minor?

Minors as Beneficiaries of Direct Gifts. In this case, state law determines who should receive the decedent’s estate and in what measures. Typically, the closest kin will inherit the property. The estate will only go to more distant relatives if there is no spouse or children.

Who are the beneficiaries if there is no will?

Depending on state law and how the will is written, the property will go to either: the beneficiary’s descendants, under your state’s “anti-lapse” law, or your heirs under state law, as if there were no will. The residuary beneficiary.

Can a child be the primary beneficiary of a retirement account?

For example, if you named your daughter as the primary beneficiary of your retirement account, and your grandchild (your daughter’s son) as the alternate beneficiary, your daughter has the ability to disclaim the account so that it goes to her child.

How to determine beneficiary age at year of death?

1 Use younger of 1) beneficiary’s age or 2) owner’s age at birthday in year of death 2 Determine beneficiary’s age at year-end following year of owner’s death 3 Use oldest age of multiple beneficiaries 4 Reduce beginning life expectancy by 1 for each subsequent year 5 Can take owner’s RMD for year of death