Which type of beneficiary is considered not legally competent to receive life insurance proceeds without a trustee appointed?

A minor beneficiary is considered not legally competent to receive life insurance proceeds without a trustee appointed because minors, typically defined as individuals under the age of 18 in most jurisdictions, do not have the legal capacity to own property or enter into contracts. This age limitation means that if a life insurance policy names a minor as the beneficiary, they cannot directly receive the funds upon the insured's death. Instead, a trustee must be appointed to manage and distribute the proceeds on behalf of the minor until they reach the legal age of majority.

In contrast, an irrevocable beneficiary possesses certain rights to the policy and cannot be removed without their consent, but this status does not imply any legal incompetence. A trustee beneficiary refers to an entity or individual designated to manage the policy for the benefit of another but does not denote legal incapacity. Lastly, a contingent beneficiary is simply someone named to receive the benefits if the primary beneficiary is unable or unwilling to do so; they do not have the same legal competency implications as a minor.