Yes, you can create a trust under the Uniform Transfer to Minors Act (UTMA). This will allow you to name someone other than the child’s parent as the custodian of the money. The trust will last until the child reaches 18, 21, or 25, depending on the state. South Carolina is the only state that does not allow these trusts. An alternative might be to set up a child’s trust, which will contain the proceeds of the life insurance policy after you die. An adult other than the child’s parent can manage this type of trust as well.