Power of attorney could not change beneficiary designation

In Unum v. Phillips, Judge Royal of the United States Court for the Middle District of Georgia ruled that the holder of a Power of Attorney could not change the beneficiary of a life insurance policy. Instead, the court ruled that the previously designated beneficiary should receive the disputed life insurance policy proceeds.

The case involved a dispute over the beneficiary designation for the life insurance benefits of a former employee of the Walton County Board of Education. The employee participated in the Board of Education's Employment Benefit Plan. On his retirement, he continued his life insurance coverage under the Plan. In 2004, he designated Mattie Morrison-Phillips as the beneficiary..

However, in 2019, the employee executed a Durable Power of Attorney appointing his niece, Ms. Stanford, as his agent/attorney-in-fact, with the authority to create or change a beneficiary designation. The POA specifically limited her from designating herself as the beneficiary unless authorized in the Special Instructions. The employee did not authorize Ms. Stanford to use her authority to benefit herself in the Special Instructions.

However, Ms. Stanford completed two beneficiary change forms in 2020, designating herself as the primary beneficiary entitled to 100% of the life insurance benefits. They filed claims for the policy benefits, and Unum filed the interpleader.. Unum deposited the life insurance benefits into the Registry of the Court, named Mrs. Morrison-Phillips and Ms. Stanford Defendants, and asked the Court to determine who receives the disputed benefits.

The court found that the Stanford Beneficiary Designation is invalid because the language of the POA expressly prohibited Ms. Stanford from designating herself as a beneficiary of the life insurance policy. The court held that there were no genuine issues of material fact, and Mrs. Morrison-Phillips was entitled to summary judgment. The court rejected Ms. Stanford's arguments that there were genuine issues of material fact regarding the validity of the 2004 Morrison-Phillips Beneficiary Designation and the claim form submitted by Mrs. Morrison-Phillips to Unum for the life insurance benefits in 2020, as well as whether Decedent ratified the Stanford Beneficiary Designation.

Call us if you are involved in a life insurance beneficiary dispute. It is important to act promptly and not risk a default of your rights. (800) 323-1857. Lawyer J. Michael Young.