What requirement is typically needed when naming a minor as a beneficiary in a contract?

When naming a minor as a beneficiary in a contract, it is necessary to ensure that the minor's interests are protected until they reach an age of majority, which varies by state. Appointing a guardian is a common requirement because minors cannot legally manage their own financial affairs. The guardian acts in the minor's best interests, managing the assets or proceeds of the policy until the minor reaches adulthood or an age determined by law.

By establishing a guardian, the responsible adult ensures that the minor's inheritance is safeguarded and used appropriately, rather than being accessible to the minor, who may not have the capacity to handle such responsibilities. This requirement addresses legal concerns and ensures that the minor receives their benefits in a structured and responsible manner.