QQuestionBusiness Law
QuestionBusiness Law
Which statement is true regarding a minor beneficiary?
A. Normally, a guardian is required to be appointed in the Beneficiary clause of the contract.
B. The minor must pay the debts of the insured's estate before receiving any of the proceeds.
C. Normally, the death proceeds are required to be held in trust until the beneficiary reaches the age of 21.
D. The minor is entitled to receive the death proceeds immediately.
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Answer
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Step 2: Understand the Context
This is a legal/insurance question about how death benefits are handled when a minor is named as a beneficiary. The key is to understand the standard legal practices for minor beneficiaries.
Final Answer
Normally, the death proceeds are required to be held in trust until the beneficiary reaches the age of 21. Key Reasoning: - Minors lack legal capacity to manage significant financial assets - Trusts protect the minor's financial interests - Guardianship or trustee management ensures responsible fund allocation - Age 21 is typically considered the point of legal financial maturity
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