When life insurance benefits for minors are designated, who can control the proceeds?

The correct answer highlights the relationship between guardianship and accountability in the context of life insurance benefits designated for minors. When a life insurance policy names a guardian for the proceeds, that individual has the responsibility to manage the assets on behalf of the minor until they reach the age of majority.

In this arrangement, accountability comes into play. If the guardian is a different person from the trustee (if there is one), the guardian may not necessarily be held to the same standards of accountability as the trustee would be. This means the guardian could have less stringent requirements to report or manage the funds, depending on the situation.

In addition, while a trustee is typically required to manage assets in the best interests of the beneficiaries and is held to a high standard of accountability, guardianship can vary, making the guardian's level of accountability potentially less structured.

Thus, the statement that "The guardian may or may not be accountable for assets" reflects this flexibility in governance and responsibilities, allowing for different scenarios regarding the management of life insurance proceeds for minors.