Steve wants to name his grandchild (age 6) as beneficiary of his life insurance policies. Which of the following is the best mechanism for accomplishing this?

1. An irrevocable life insurance trust should be created for the benefit of the grandchild.
2. The ownership of the policy should be transferred to the grandchild.
3. A revocable life insurance trust should be established and funded with a transfer of the life insurance policy.
4. Steve should be the owner with the grandchild listed as the listed beneficiary.