Preventing a change of beneficiary?

[Steve Champs]

Several years ago my father, who resides in Texas, changed
the beneficiary designation on his life insurance policy. Initially,
he had designated a 40/30/30 split between his current wife,
my brother, and I. He subsequently convinced his wife to
sign off on the policy leaving my brother an I as co-beneficiaries.

He is now on hospice, in the last stages of a terminal illness.
He takes very large amounts of pain medication daily, including
morphine derivatives.

The life insurance policy is his only remaing asset, what other
money that he had having been spent in the last four months
by his wife (updating the kitchen, installing new floors,
purchasing a Rolex, earrings, and a motorcylce, etc.)

My brother and I are concerned that his wife may take
advantage of his current state of mind to pressure him into
changing the beneficiary designation or, cashing in the policy
(for pennies on the dollar) and turning the money over to her.

Is there anything that my brother and I can do pre-emptively
(or otherwise) to prevent changes being made on the policy
for reasons of mental impairment/incompetence arising from
his medical condition?

 

[ALawyer]

My suggestion is that you get the advice of a local lawyer, fast, as a lot of money may be at stake and it may require legal services to make sure you get what you think is coming to you. Instead of waiting until later to see if she has made changes, and then getting a lawyer, spending a few hundred dollars now can save tens of thousands in legal fees later on, and also get you your share. Think of it as a type of insurance -- just in case.

The lawyer likely would seek to get a doctor to confirm that your father no longer has the mental capacity to make decisions for himself and also notify his life insurance company of this fact (they really pay attention when lawyers are involved), putting it on notice that when he passes they should think twice about paying any claim based on newly filed beneficiary changes. You'd still have to have to fight over the money with your step mother, but better that be done before she collects the money from the insurance company.

The lawyer might also suggest getting an order naming you as conservator -- and thus stipping him of any power to act for himself -- although the wife may seek that same power.