Beneficiary changes

[tscreeton]

Hello, I am in Indiana

Recently my Dad past away leaving two life insurance policies. I have four brothers and myself that were listed as beneficiaries on these policies. I have been suspecting the oldest of foul play. After contacting Midland about the policies I learned that they had been changed - now only showing one sole beneficiary: the oldest brother. My question is this: as power of attorney on the estate can he sign my Dad's name to change the policies, making himself the sole beneficiary? My Dad told me just three weeks prior to his death that: "your brother signed my name to some insurance documents," indicating to me that something was fishy.

 

[anteater]

What do you mean by "...as power of attorney on the estate..."? The word "estate" creates ambiguity since, in general usage, one refers to an estate once someone has passed away. A power of attorney is only effective during the lifetime of the person granting it. Did your father grant a power of attorney to your brother to be effective during your father's lifetime?

Even if your father did, a change made by your brother is invalid unless the power of attorney document explicitly gave the power to change beneficiaries to your brother. Even then, the general prohibition against an attorney-in-fact engaging in self-dealing could invalidate the change. In many states, the law is up in the air on this issue.

Notify the insurance company ASAP that you believe that the beneficiary change is invalid and that you will contest any disbursement of the policy proceeds to your brother. That should, at least, slow the train down. Then begin looking for an attorney to represent you and your brothers.

 

[tscreeton]

Thank you for the advice. No, he had just become power of attorny just for the sole dealings of life insurance benefits, bank accounts, and so on. My Father would be rolling over in his grave if he knew that his insurance benefits were not going to be dispursed equally among all of us. I have contacted Midland about this with no response as of yet. The benefit claim is new - my Father just passed on Dec. 15, 2009. What led me to believe foul play was that my older brother taking control by offering to pay the funeral expences, telling us that they came to $15,000. I contacted the funeral home to fax me the totals - the came to $10,500. I will definitely be getting more aggressive with the insurance company tomorrow morning. Unfortunately, the benefits may already be disbursed - what are my legal options if they have. Thanks again.