I was asked this question yesterday when speaking to a group of Sunlife financial advisors, and in fact I'm asked it pretty often. The question is whether an attorney acting under an Enduring Power of Attorney can change an existing beneficiary designation on behalf of the person he or she represents. For example, if Haley is acting as attorney for her Dad, and Dad has a RRIF that designates his two children as the beneficiaries, can Haley change that?
Beneficiary designations are found on RRIFs, RRSPs, LIRAs, segregated funds, pensions, insurance policies and other instruments.
The answer is "no", the attorney cannot legally change an existing beneficiary designation. It doesn't matter if the attorney agrees with the designation or not; it's not the attorney's money or the attorney's decision.
It's possible that an investment that has a designated beneficiary might mature, and the attorney has to take steps to re-invest it on behalf of the person he or she represents. In this case, the attorney's job is to continue the designation that had been made before. Deciding not to continue the designation is the same as deliberately changing it.
Beneficiary designations are found on RRIFs, RRSPs, LIRAs, segregated funds, pensions, insurance policies and other instruments.
The answer is "no", the attorney cannot legally change an existing beneficiary designation. It doesn't matter if the attorney agrees with the designation or not; it's not the attorney's money or the attorney's decision.
It's possible that an investment that has a designated beneficiary might mature, and the attorney has to take steps to re-invest it on behalf of the person he or she represents. In this case, the attorney's job is to continue the designation that had been made before. Deciding not to continue the designation is the same as deliberately changing it.
Does it mean the grantor can make change to a beneficiary designation even after a POA has been invoked? Does it depend on the grantor's mental capability?
ReplyDeleteWhat if the grantor is changing the beneficiary to the attorney? What if the new beneficiary designation is arranged by the attorney and the grantor simply puts his signature down, e.g. a beneficiary designation form?