Can my sister (POA) make herself the sole beneficiary?

[A Virginia Girl]

What is the name of your state (only U.S. law)? VIRGINIA

My mother recently died at the age of 88 (she lived a happy life). Recently one of my sisters mentioned that my older sister who was care giver and POA (Power of Attorney) for my mother had removed my name as beneficiary on one of the life insurance policies that my mother had been paying on for years. Actually, my older sister has made herself the sole beneficiary for all the policies. I was able to find out that the policy changes were made about 6 months ago. I understand that the POA pretty much gives you full authority however, can she do this? Legally? With my mother suffering from dementia for the past few years, I truly believe she did not direct my sister to remove all the other children and make herself the sole beneficiary. Is there anything I can do?What is the name of your state (only U.S. law)?

 

[anteater]

You really need to consult with a Virginia attorney who has experience with POA's. In fact, you should band together with the other affected siblings in finding and retaining an attorney.

Virginia recently enacted changes to its POA statutes in order to have greater conformity with the Uniform Power of Attorney Act, effective July 1. And the statutes apply to POA's created before that date.

The general principle is that an agent under a POA should not take actions that benefit themselves - usually called self-dealing. Personally, I think that your sister should be hung from her toes. But, before you go get the rope, consult with that attorney.

(You might also want to contact the insurance companies as quickly as possible and inform them that you believe that the beneficiary changes were not valid. The companies may or not respond favorably, but, at this point, you want to do what you can to try to slow down any payment of the proceeds.)

 

[justalayman]

along with that, often times (generally from my understanding) if the POA is only a general POA, it becomes ineffective if the principal becomes incapacitated. There are types of POA's that do continue to remain in force as well. Since it sounds like mom was incapacitated, if sister did not have the proper type of POA, her actions would simply be meaningless.

 

[Betty]

Agree with anteater - talk to an attorney & the ins. co. as soon as possible. This sounds like something your sister "probably" did not have the authority to do even though she had POA.

Good luck. You do want to talk to an attorney to protect your interest in the ins. proceeds.

 

[anteater]

along with that, often times (generally from my understanding) if the POA is only a general POA, it becomes ineffective if the principal becomes incapacitated. There are types of POA's that do continue to remain in force as well. Since it sounds like mom was incapacitated, if sister did not have the proper type of POA, her actions would simply be meaningless.

jal - I did a bit of searching on the VA statutes. In VA's latest revision, the POA is considered durable unless "unless it expressly provides that it is terminated by the incapacity of the principal." And the revision is applicable to POA's that existed before the adoption of the revision.

The "durability default" is generally the case for states that adopt some form of the Uniform Power of Attorney Act.

 

[Betty]

A Virginia Girl, you will still want/need to talk to an attorney as suggested to protect any interest
you might have in the policy proceeds.

 

[justalayman]

jal - I did a bit of searching on the VA statutes. In VA's latest revision, the POA is considered durable unless "unless it expressly provides that it is terminated by the incapacity of the principal." And the revision is applicable to POA's that existed before the adoption of the revision.

The "durability default" is generally the case for states that adopt some form of the Uniform Power of Attorney Act.

thanks antie. I wonder if that isn't because so many people create DIY POAs and never realized the POA died with the incapacity. Then they would be stuck with a court action seeking guardianship or conservatorship and all the hurdles that go along with either of them. The default durable condition would effectively protect people from their lack of understanding of the situation.

 

[Betty]

The "durability default" is generally the case for states that adopt some form of the Uniform Power of Attorney Act.

Per my reference, La. is the only state which has not adopted some form
of the Uniform Power of Attorney Act.