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SALT LAKE CITY — Susan Cox Powell's mother-in-law and sister-in- law are challenging in court her father's effort to remove them as beneficiaries of $2.3 million in life insurance proceeds.
Chuck Cox last year made himself the sole beneficiary of a trust Josh and Susan Powell set up, effectively cutting out his dead son-in-law's mother, Terrica Powell, and sister, Alina Powell. A court appointed Cox conservator of the trust in January 2013.
"All I've done is try to protect my daughter's assets, so when my daughter comes back and she's found that there'll be something for her to come back to," Cox said after a hearing Tuesday in 3rd District Court.
Told Susan Powell would be presumed dead in December — five years after she disappeared from her West Valley home — under state law, he said, "I'm not dealing with that at this time."
Terrica and Alina Powell don't stand to receive a share of the trust money unless she's declared dead.
"I don't know that anybody really believes that she is still alive," Joshua Lee, an attorney for Terrica and Alina Powell, said outside the courtroom.
Lee argued in court that Cox doesn't have the authority to amend the trust without a court approval. He asked Judge L.A. Dever to void the change Cox made and to require him to post a surety bond in the event he breaches his duty as conservator.
Dever denied the request for the bond but did not rule on the motion to invalidate Cox's actions. He said he would issue a written order because of the complexity of the case. He didn't say when that would be.
In May, a federal judge in Washington issued an order dividing the money from three separate life insurance policies tied to Josh and Susan Powell. The proceeds would presumably be deposited in the trust when Susan Powell is declared dead in December.
As sole beneficiary of the trust, Cox would receive 100 percent of the money, or about $2.3 million. Josh Powell's mother would still receive more than $756,000 from the other policies.
Lee questioned Cox's motive for amending the trust.
"Is it coincidence that he happens to be lining his own pockets?" he asked the judge.
Lee acknowledged that Cox suffered from the "awful" things Josh Powell did. But Terrica Powell suffered, too, he said.
"She has lost two sons, two grandchildren and a daughter-in-law," Lee said. "It has been a horrible ordeal for her as well."
Josh Powell's brother, Michael Powell, committed suicide a year after Josh Powell lit his Washington home on fire and killed himself and his two young sons.
Cox's attorney Ted Buck said a previous court ruled that Susan Powell is unable to manage her property and affairs because of her disappearance, leaving that responsibility to the conservator. He said Cox is doing his "level best" to administer the trust as his daughter would have under the circumstances.
"This is about Susan Powell. This is not about Charles Cox. This is not about the Powell family. It's about this woman's deprived future," he said.
Dever said it's speculation as to what Susan Powell would want.
