Can someone with power of attorney change a life insurance beneficiary in Ontario?
It is not clearly settled, so be careful before you act. The Insurance Act gives the right to alter or revoke a beneficiary designation to the insured, and whether an attorney may step in is not answered by statute and has been disputed in court. Get advice before changing anything.
A continuing power of attorney for property may let the attorney do anything with property that the grantor could do if capable, except make a will. A guardian of property has the same power and limit. There is a narrow exception for plans such as RRSPs: an attorney may make a designation when the plan is converted, renewed, replaced or transferred. If the beneficiary was named irrevocably, the designation cannot be changed without that beneficiary's consent while they are living.
Other limits matter too. An attorney or guardian must not dispose of property they know is the subject of a specific gift in the incapable person's will, though this does not cover specific gifts of money, and disposal is allowed where needed to meet their duties.
Key takeaways
- The Insurance Act gives the right to alter or revoke a beneficiary designation to the insured, by declaration.
- A continuing power of attorney for property lets the attorney do anything the grantor could do if capable, except make a will.
- An irrevocable beneficiary cannot be changed without that beneficiary's consent while they are living.
- An attorney must generally not dispose of property they know is the subject of a specific gift in the incapable person's will.