Why You Shouldn’t Name Minor Children As Beneficiaries

The College Investor Audio Show · Apr 30, 2026 · 9m

Parents buying life insurance or opening retirement accounts usually want to name their children as beneficiaries (typically as a contingent beneficiary after a spouse). It feels like the obvious choice — if something happens to you, the money should go to your kids.

But naming a minor child directly as a beneficiary is one of the most common and disruptive estate planning mistakes a parent can make, and it can tie up the very money your family needs most during an already difficult time.

The problem is odd: minors cannot legally enter contracts in most states. A bank account is a contract…