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Western Fraternal

Linda of Central City IOWA (06/11/03)
My mother and father both bought annuities from Western Fraternal on April 1, 1994. Both designated the beneficiary as their spouse with contingent beneficiaries as their daughters, Virginia and Linda. On April 14, 1999, I notified Western Fraternal that I had power of attorney for both parents and requested that they contact me regarding any further correspondence regarding this annutiy or any other financial matters. They then sent billings and other information to me at my address.

My father died on April 3, 2000. On May 11, 2000, my mother's doctor completed a Verified Physician's Statement stating that my mother was substantially unable to care for her own financial affairs. Prior to this time, I was appointed Social Security Representative Payee due to the fact that my mother was incapable of providing information to them on the phone or setting up direct deposit without my assistance. Virginia unsuccessfully challenged this appointment. She also removed $2400 from my mother's checking account without my knowledge and opened a new bank account with only her name and my mother's name on it.

On May 22, 2000, I filed a petition for conservator and guardianship. The petition was stamped at noon on that date. On June 2, 2000, my petition was approved by the court. On June 13, 2000, Western Fraternal was notified of my conservatorship and guardianship. I also spoke with a Bill Skripsky about an annutiy income option and about cashing out the annuity, but Western Fraternal did not get back to me on this or send me the necessary forms. At no time did Western Fraternal notify me that the beneficiaries had been changed and at no time did they issue a new policy showing this change.

On May 23, 2002, my mother died. In June of 2002, I contacted Western Fraternal regarding this and sent them a death certificate. In June of 2002, I was called by their agent/employee, Donald W to set up a meeting in order to sign forms as a beneficiary. During that phone conversation, Donald W, haltingly revealed that Stanley had been added as a beneficiary, replacing my father. Wnen Donald W came to my home, I asked him when the beneficiary clause had been changed. He said he visited my mother after my father died and it was done at that time. I then showed him the original policy and told him I had not been notified of any change to beneficiaries. I made copies of the policy as well as my power of attorney and conservatorship/guardianship appointment papers and I refused to sign anything until I had spoken with an attorney.

I asked Mr. W who was present when the beneficiaries were changed and asked specifically if Virginia was present. He said he knew Virginia well and that she was not present. He said there was a nurse's aide present and he described her in some detail. As Mr. W was leaving he shook his finger at me and said, "You're going to have to sign these forms sooner or later whether you want to or not."

I called the Western Fraternal office and spoke with their supervisor named Lori and asked her when the change to beneficiaries became effective. She stated June 13, 2000. I asked for a copy of the change. When I received the form, it was dated May 22, 2000, it was stamped received in the office June 5, 2000 and it was recorded by secretary Howard Wolfe June 13, 2000. I then checked my records for the day of May 22, 2000. My mother had 24-hour care provided by Interim Health Care. There was no nurse's aide on duty from 7:15 am until 3:00 pm on May 22 as Virginia was with my mother during that time. At 3:00 pm, the nurse's aide that Donald W described came on duty. Her name is Gwen K. I have both time slips and a billing to verify this.

Therefore, the change to beneficiaries occurred after my petition for conservatorship/guardianship had been filed. Under Iowa Code section 633.638, Western Fraternal and its employee commited statutory fraud. The statute, called Presumption of Fraud states that “If a conservator be appointed, all contracts, transfers and gifts made by the ward after the filing of the petition shall be presumed to be a fraud against the rights and interest of the ward except as otherwise directed by the court pursuant to section 633.637.” I believe there is a further presumption inherent in this law that all contracts, transfers and gifts made by the ward after the appointment of a conservator without the conservator’s knowledge shall also be presumed to be a fraud.

My mother was unable to dial a phone on May 22, 2000 so she did not contact Donald W. Her mental condition would have been obvious to Donald W. Furthermore, she had never handled, nor had any desire to handle financial matters. I had taken care of all my parents' financial matters since late 1998. Furthermore, Stanley C was listed as my mother's son in the beneficiary clause. His legal relationship to my mother is step-brother. My mother would never have referred to him as her son.

It is my belief that Virginia and Stanley C offered an inducement to Donald W, either cash or future business -- I believe both are Western Fraternal clients; I am not, if he would visit my mother on a particular day and have this clause changed. It is my belief that he obtained my mother's signature through prevarication or threat and that the annuity was either backdated to May 22 or that the beneficiary clause was added later, not in the presence of my mother. Nurse's aide, Gwen Kirkwood, had been conspiring behind my back to have me removed as conservator and guardian for my mother.

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