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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?

In my most recent experience (lost my Dad last year) POA ends at time of death.
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!
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AlvaDeer May 20, 2024
The OP's mom is alive.
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Seems like you need to take your concerns to a local lawyer. Usually, you would be considered next of kin to make decisions on your mom's behalf. If your mom is not competent to make decisions and your aunt got mom to sign POA paperwork while incompetent, then your aunt acted fraudulently. The POA should be easy to nullify, to inactivate, with proper documents. This is why you need a lawyer. Any action your aunt tries to take with this document should be able to reverse once you can get the POA inactivated. You may have to involve the courts to get reverse these actions and to actually stop your aunt.
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Lovemom1941 May 20, 2024
Also important to know that most lawyers will do a first consult for free and advise you of the costs to take any action. If mom is competent in his opinion, she can issue a new POA to you and void the first one.
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You may be able to get a copy of the policy from the state. They will want to ask her , she probably will be able to say "talk to my daughter" or just "yes" or some such. Contact the employer in her past department to get information on where to call. This may work, it's worth a try!
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I, for one, cannot imagine why ANYONE would EVER change the beneficiary of anything outside of a will or trust without specific and direct instructions from the principal. No one knows why that life insurance policy was held separate or why that beneficiary was named. And I certainly can't imagine why anyone would ever change the beneficiary of a life insurance policy without being specifically instructed to do so
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Nwireman03: Pose this question to an attorney.
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There are a lot of assumptions and finger pointing going on in here. The first thing to remember is that there are 2 types of POA, healthcare proxy and financial (durable). You say that you take care of your mother; is it not possible that your aunt had the DPOA all along? Who has been paying the bills, handling your mother's financial and legal issues? Your aunt doesn't even need to be in the same state to do these things. Your mom may not remember assigning her as DPOA.

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.
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ForReal May 19, 2024
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Absolutely NOT. You would need to be a Legal Guardian, and even then, you would need the probate court's approval for any significant change to assets.
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What your aunt did was illegal.
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That’s terrible. I’d talk to a Family lawyer, immediately.
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I'll make this short: with dementia, your mother cannot "legally" sign a new POA. How do you know she got your mom to sign a new POA? Please see an attorney. Yes, it will cost you money but it will be much much less than what you will lose if you lost that beneficiary status.
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If Mom has Dementia Aunt cannot get POA. It has to be assigned by your Mom and she can no longer sign contracts. If Mom has a former diagnosis I would contact the lawyer who wrotebit up and tell them Mom was incompetent at time she assigned Aunt.

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.
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Pyrite May 19, 2024
How does one PROVE incompetence at an earlier date?
"Honest, she USED TO BE incompetent."
yeah, sure.
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How exactly did your aunt get POA behind your back? Presumably, you live with your mother while taking care of her all day and night? When did your aunt get your mother to sign a POA document? And who notarized the signature?
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There are different types of life insurance policies and as explained below, different powers assigned to power of attorneys depending on what is written in the POA.

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.
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She may be able to if she is the current POA. It depends on the POA document. Some stipulate what can be changed and what cannot. You won't be able to know that so you must assume it can be changed.

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.
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Jacquelinezr May 19, 2024
Please listen to this response. AlvaDeer has great information here.
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Only the owner of the policy can change the beneficiary. The POA would have to be added to the policy in order for her the change the bene. Without your mom's permission, your aunt would have to get a court order in order to be added to the policy as a POA.

Just having a POA without being added to the insurance policy doesn't do jack squat.
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acKENmind May 19, 2024
Im not an attorney but I'm going to say that this is incorrect from my own experience, having done it for the right and legal reasons.

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.
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Maybe:

"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.
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Rumbletown May 15, 2024
Thanks Geaton: I’ll just add that the other constraint on the POA is that it’s not a free-for-all: they are expected to exercise this legal power either at the direction of/with permission of the principal (if the principal has capacity). or, as is more often, the case on this forum where the principal doesn’t have capacity,… in the best interest of the principal.

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
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Nwire, it is a crime for a POA to enrich themselves using their POA authority.

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.
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MountainMoose May 15, 2024
Perfect post.
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