Hi my name is Nicole and I have been taking care of my mother of 75 years old suffering from domentia. Her sister my aunt who lives in Tennessee came down to Oklahoma got POA behind my back. I am my mom’s beneficiary on her Illinois state life insurance. I don’t have a copy of the policy and my mom doesn’t have any idea where it is either. I take care of her and haven’t worked in over a year because I have to be available all day and night now she’s gotten worse. I want to know if my aunt will be able to take her life insurance over me the beneficiary?
If mom is able, get her to do a new POA and send Auntie a notice that she is no longer the POA. If the POA was done after mom was deemed incompetent, get an attorney to send a letter explaining that a document created by an incompetent person is not legally valid and if she tries to enrich herself she will be prosecuted to the fullest extent of the law.
Money and power, real or perceived, makes many people ugly cockroaches.
"In general, a POA authorizes the agent to change a life insurance beneficiary, subject to legal exceptions. Remember, POAs can grant general or limited powers, depending on the principal's wishes. Once executed, the agent can legally perform the activities stipulated in the document."
Source: https://www.calalaw.com/blog/can-a-power-of-attorney-change-a-life-insurance-beneficiary/#:~:text=In%20general%2C%20a%20POA%20authorizes,activities%20stipulated%20in%20the%20document.
So if your Mom's PoA document grants the PoA this authority, then the answer is yes.
That last part is where it’s going to get problematic here. With the facts described, not at all clear why it would be in the interest of the mother to have the life insurance reassigned, unless there’s some obvious reason she would benefit from doing so.
Not a lawyer! But seems like this “Yes, the POA probably does have this power, but…” is a common topic
Also described in agingcare’s own so educational material on POA, stating that the POA can’t “break the responsibility to act in fiduciary best interest”.
https://www.agingcare.com/articles/things-you-can-and-cant-do-with-poa-152673.htm
Just having a POA without being added to the insurance policy doesn't do jack squat.
As POA, I have legal authority to make decisions and sign documents as long as it is in the best interest of my LO. I can take any legal action in his behalf. This, of course, must be stipulated in the agreement. It is the entire point of the agreement.
What would be a good and legal reason? In our case my mother and her husband signed Family Trust that stipulated that all assets would be divided equally among the 3 beneficiaries "except" those that were separately listed in their individual Wills. I found a life insurance policy that had listed a single beneficiary that was not in a Will, so I, as POA, changed the beneficiary to the Family Trust so that all would benefit at the final passing. The insurance policy was older than the Trust, but the Trust was their final and most recent wishes. It was my responsibility as POA and 1st alternate trustee of the Trust to honor those wishes, not the outdated wishes of the insurance policy.
This is the THIRD TIME TODAY I have had to tell our OPs that it is NOT OK to care for a senior without a care contract.
Tell your Mom's sister, your Aunt the following:
1. I am the one doing daily care of your sis, my mom.
2. I insist that as POA you go to an elder law attorney with me, and that we make a care contract.
3. This care contract will include the following.
A) Shared living costs for my mortgage (rental or other). This must read as "shared living expense, not as "rental" as the latter has tax repercussions for me.
B) Cost of transportation to appointments.
C) Cost of food weekly and of food prep and cooking
D) Cost of cleaning fees
E) Stipulation on how often shared living will work for BOTH mom and myself; it it is not working for one of us then it is now working for either of us and mom will require placement.
Now you can do this on YOUR OWN with an attorney who can make and present to the POA a "bill" for your above expenses as well.
If you are not compensated then you can give your Sister the POA a note as to when you mother must be placed in care and a reminder that is her responsibility as POA.
I am tired to death of reading on this Forum how often family members are taken advantage of by wrong-doers, and how often THEY LET THIS HAPPEN.
You are a grownup and responsible for supporting yourself, taking care of your mom and you are deserving of compensation for that, because it would amaze you to see what Medicaid will pay for such a thing.
Take the bull by its horns, or continue to be taken advantage of. Truly the choice is your own.
And, by the way, I am sorry for all you're going through.
You don’t seem to have this information. You mention three different states. Is the State of Illinois who issued the policy? If so, perhaps you can contact them and get a lead on how to get a copy of the policy. Do you think the aunt took mom’s policy when she visited? How do you know the aunt got the POA? Did she tell you?
https://cms.illinois.gov/content/dam/soi/en/web/cms/benefits/stateemployee/documents/life-insurance/metlife/gr-tr-bene-met2-soi.pdf
https://cms.illinois.gov/benefits/stateemployee/statelife.html
For what it is worth, a top of the line elder law attorney had me enter a beneficiary on aunts group life policy. I assumed it would be cashed in for her Medicaid application. It has no value until she passes so wasn’t part of the application. For whatever reason there was no beneficiary listed on her annual summary from her employer. I have no idea why. Aunt wanted it split amongst all her living nieces/nephews. It’s a very small policy.
The beneficiary form for the State of Illinois has a place for the POA to sign. Seems to be a common practice.
I would hope that Aunt cannot change beneficiaries on life insurance policies. Mom assigned that person it should not be changed. And a POA can do nothing where they profit.
"Honest, she USED TO BE incompetent."
yeah, sure.
Now, depending upon how the DPOA was drafted, she very well could make changes to life insurance policies. I personally have done so with reason. But, why do you worry that she would? As a POA she cannot enrich herself legally.
In our case, the insurance was older than a Family Trust. The Trust dictated that all beneficiaries would share in all assets equally except those listed in separate wills. As the insurance was not listed in a will, I changed the beneficiary to the Trust, following the most recent wishes while they were both alive and cognizant.
Any beneficiary, will, trusts, are totally separate from a POA which handles a person’s affairs when they are Living and cannot take care of things themselves.
Seeking an attorney consult to clarify and confirm this would be a good decision, but this is exactly what happened in our family’s case.
Blessings to you!