I wouldn't consider it, but from previous changes in names to it, I pose this question.
This is an old policy that was originally in my Father's name (he owned it/paid it). From paperwork recently discovered,
- 6 years before he passed, he signed an insurance doc stating he was changing the policy over to my name, and my Mother took ownership of it upon his passing as part of the estate
- to note, at the time of signing it my Father was mentally incapacitated from a stroke & cancer to understand what he was signing
- its up for renewal - can my Mother change it from being in my name to being in her name?
- she's 95, recently placed in LTC but able to understand what she would be doing in signing it
I need to know what options I have, if any, before contacting the life insurance company. Any help is appreciated.
The exception would be - if someone has POA and it was drawn up prior to your mother becoming incompetent. In addition- and this is the big factor - if there is a POA in place AND it specifically says the POA has the authority to change the beneficiary of the life insurance policy.
POA and DPOA have two points of authority that are quite tightly regulated. One is changing beneficiaries of insurance policies. That power must be specifically spelled out and granted in the POA document. The other point is Last Wills. Under no circumstances is a POA allowed to change a will. These two points are legally binding in all 50 United States- I'm assuming that is where you live.
I'm confused. If the policy was on your father and it now has "passed" to your mother why has it not been cashed out. OR if your mother is the insured person - do you mean you want the beneficiary to become her estate?
However - none of that changes the primary issue of being able to - or more likely - NOT being able to change the beneficiary.
As your mothers POA the insurance company should be willing to at least talk to you about other alternatives if there is no secondary.
Is there the possibility of cashing out the policy? Most life insurance policies have a "cash value" and allow for that. But again, that will fall under the realm of POA authority being specifically granted the power to deal with life insurance pay-outs and beneficiaries.
As cmagnum suggests - it may very well be worth the time and expense to discuss the situation with an attorney.
I've never heard of and existing insurance policy become a part of an estate - but as this is what occurred - the ownership of the policy being passed to your mother as a part of your fathers estate.
Would the policy then become a part of your mothers estate - to be inherited by someone when your mother passed?
If this is the case - the new owner of the policy could certainly change the beneficiary or cash it out if that's an option.
I have POA and am executor for Mom. I'll go back and read the POA, having doubts as to the correct wording as you stated. Thank you Rainmom - I had no idea where to start.
Wondering if a lawyer could interpret the wording on the POA.
Cashing out the policy was a consideration but Mom didn't think it was worth much with a cashout after taxes are paid on it.
I'll be posting what I find out from this, if any one is in a similar situation.
Game-changers are life-long company pensions. Not to sidetrack, but a surprising number of Seniors here benefit from that in some form; something that is disappearing for upcoming generations. Cutbacks to facilities are bringing in extra fees for everything, so the result is the same but that is another topic.
Thank you all for your answers. I can proceed much better informed & thats huge. Wish I would've found this web site years ago. The support is amazing & invaluable.