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SallyClare Asked September 2023

After mother passed away I learned that her power of attorney, my sister, has changed her beneficiaries on her investments. Is this legal?

AlvaDeer Sep 2023
It must have been, because changing these things is very very difficult to do, and a POA would have been reviewed by the companies. A POA can do whatever the documents SAY they can do. My own POA and Trustee of Trust gave me wide powers to change beneficiary on CDs that came due, no matter who was listed as the beneficiary when they were created. Fact is I kept them as I felt my brother wished them to be, but I COULD HAVE changed them.

The place to start is to investigate when and how they were changed. I can't help but think you will need an attorney for this. If the POA changed them to him or herself you have a better case, as POA cannot "enrich" themselves. And it would be looked at if they make their own progeny the beneficiary, say, instead of YOU.

I would see an elder law attorney about this with any documentation or proof you have as to when, where, how and why these changes were made.
Oedgar23 Sep 2023
This is good advice. A POA has to be careful not to line their pockets or do anything that looks that way. After mother gave me POA, I set up an online portal to see what kind of life insurance she has (for Medicaid planning). Her best friend, also elderly and sick, was the beneficiary. I wanted to be named so that I am not stuck paying her final expenses. It’s not a huge policy, $5000. Also, keep in mind husband and I have probably already spent about $5000 helping her and getting the legal stuff done with the elder lawyer. Mother had mentioned putting me as the beneficiary. I could have done it myself, but I printed the paper and brought it to her for her to sign. I was not touching that myself.
MeDolly Sep 2023
Depends, was your mother of sound mind or did she have dementia when this was done?

Did she make herself the sole beneficiary?

Need more information.

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CTTN55 Sep 2023
Tell us more. I hope that you didn't give up your life to be her 24/7/365 caregiving slave to "save the inheritance." What's the approximate value of the investments?

How did you find out?

wumbo42 Sep 2023
It depends on the state, some require that it is explicitly allowed in the written POA document. Do you have a copy?

Beatty Sep 2023
Did the new beneficary arrangements benefit your sister or her decendants more than before?

taimedowne Sep 2023
It is certainly legal in that she had the legal right to do so.

The question you need to ask is if that is what your mother wanted because if it was not then the POA acted against your mother’s wishes and that is unethical and possibly illegal.

What evidence exists that your mother wanted to make that change? If there isn’t any then you are right to be suspicious because the POA can’t use their agency to enrich themselves.

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