Jane Dotson
The case of Susan Powell, the Utah mother who disappeared in 2009, remains a mystery. Her husband, Josh Powell, was the only named person of interest in the case, but he was never arrested or charged with her disappearance or death. In 2012, Josh killed himself and the couple's two young sons in a fiery explosion. In the months before his death, Josh altered the terms of a $2.5 million life insurance policy on himself, his sons, and Susan, who was still missing. This sparked a legal battle between Josh's family and Susan's family over who was entitled to the insurance money. Josh's family argued that they were entitled to half the proceeds from the insurance policies, while Susan's family sought justice and closure for the loss of their daughter and grandchildren. The case raised questions about whether Josh's actions disqualified him and his family from receiving the insurance payout and if his family was willing to admit that he killed his wife to collect the insurance money.
| Characteristics | Values |
|---|---|
| Reason for dispute | Josh Powell changed the terms of his family's life insurance to designate his brother, Michael Powell, as the main beneficiary, with his sister and father to receive smaller percentages of the payout. |
| Date of dispute | 2012 |
| Parties involved | Josh Powell's family, Susan Powell's family |
| Nature of the dispute | Whether Josh Powell's family can claim the life insurance money despite Josh being a "person of interest" in Susan's disappearance and the "slayer" of his children |
| Outcome | A judge ruled that the life insurance money be split 50-50 between the two families. |
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What You'll Learn
- Josh Powell changed the terms of his family's life insurance policy to benefit his siblings
- Powell's family argued they were entitled to half the proceeds from insurance policies
- Susan Powell's father, Chuck Cox, lost his claim on the life insurance
- A judge ruled that Washington's slayer statute does not extend to Powell's family
- Susan Powell's family settled a court battle over the life insurance money
Josh Powell changed the terms of his family's life insurance policy to benefit his siblings
In October 2011, Josh Powell changed the terms of his family's life insurance policy. Previously, the policy was set up so that a family trust would receive the life insurance payouts. However, after the change, Josh Powell's siblings would become the beneficiaries. Powell's brother, Michael Powell, was designated as the main beneficiary, with his sister, Alina Powell, and father, Stephen Powell, receiving smaller percentages of the payout.
The change in the life insurance policy came just weeks after Josh Powell's father was arrested on charges of child pornography and voyeurism. Two months later, Powell made another change to the beneficiary information. This time, he designated his brother, Michael, as the beneficiary who would receive 93% of the payout, while his sister, Alina, would receive 4%, and a third sibling would receive 3%.
The life insurance policy in question is reportedly worth $2.5 million and covers Josh Powell, his missing wife, Susan Cox Powell, and their two sons, Braden and Charlie. Powell was considered a “person of interest” in his wife's disappearance and the prime suspect in her presumed death. He was also the prime suspect in the murder of his two sons, whom he killed during a supervised custody visit in February 2012.
Due to Powell's status as a "person of interest" in his wife's disappearance and the "slayer" of his children, there has been controversy over whether he and his family should be eligible to receive the life insurance payout. The insurance company has petitioned the court to decide on the rightful beneficiaries, and a judge has since ordered that the life insurance money be split 50-50 between Susan Powell's father and three family members of Josh Powell.
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Powell's family argued they were entitled to half the proceeds from insurance policies
Josh Powell's family has been involved in a legal battle over the life insurance policy of the family of Susan Powell, who disappeared in 2009. Powell was the sole suspect in his wife's disappearance, and he later killed himself and their two young sons in 2012.
In the months before his death, Josh Powell altered the terms of a life insurance policy on himself, his sons, and his missing wife, Susan Cox Powell. He changed the beneficiary designation on the primary insurance portion of his policy to make his brother, Michael, the primary beneficiary, with his sister Alina and other brother, John, receiving smaller percentages of the payout.
After Josh Powell's death, his family argued that they were entitled to half the proceeds from the insurance policies taken out on the couple and their two sons. They also argued that Susan's father, Chuck Cox, had wrongly shut them out of the estate in 2013. Josh Powell's mother, Terrica Powell, and his sister, Alina Powell, contended that they were illegally removed from the trust and challenged the issue in court. They believed that the money should be split 50-50 between the two families.
A federal judge in Washington ruled that Josh Powell's family could share in about $793,000 from the life insurance proceeds from the two young sons he killed. The judge ruled that Washington's "slayer statute," which prevents a killer from benefiting from life insurance policies, does not extend to other members of Powell's family.
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Susan Powell's father, Chuck Cox, lost his claim on the life insurance
Susan Powell, a Utah mother, disappeared in 2009 and has never been found. Her husband, Josh Powell, was the only named person of interest in the case, but he was never arrested or charged with her disappearance or death. Josh Powell later killed himself and the couple's two young sons in 2012.
In the months before his death, Josh Powell altered the terms of a $2.5 million life insurance policy on himself, his sons, and his missing wife, Susan. He changed the beneficiary of the life insurance from the family trust to his siblings. This resulted in Susan Powell's father, Chuck Cox, losing his claim on the life insurance.
Chuck Cox filed for conservatorship in the estate of his daughter and fought a legal battle over the life insurance money. A 3rd District judge ruled in favor of Chuck Cox, but he was also criticized for his legal arguments. The judge's decision was partly based on the fact that the Powells waited too long to file their appeal.
The life insurance money was ordered to be split 50-50 between Chuck Cox and three members of Josh Powell's family: his brothers, Michael and John, and his sister, Alina. The riders from New York Life covering Josh and Susan Powell's two sons were also split 50-50 between Cox and Michael Powell's estate.
The Powell family argued that Susan Powell's death occurred earlier than the date declared by Chuck Cox, and that he had wrongly shut them out of the estate in 2013. They also contended that they were illegally removed from the trust and were challenging the issue in court. However, the court ruled that Washington's "slayer statute," which prevents a killer from benefiting from life insurance policies, does not extend to other members of the killer's family.
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A judge ruled that Washington's slayer statute does not extend to Powell's family
In the case of Josh and Susan Powell, a judge ruled that Washington's slayer statute does not extend to Powell's family. Josh Powell was the sole suspect in the disappearance of his wife, Susan Powell, in 2009. He was also a person of interest in the death of his two children, Braden and Charlie, during a supervised-custody visit in 2012. Powell's family tried to claim the $2.5 million life insurance policy on himself, his sons, and his missing wife, Susan Cox Powell.
The slayer statute in Washington State prohibits killers from receiving life insurance proceeds covering their victim. However, the judge ruled that the law only applies to the killer themselves and not their relatives. As a result, the judge ordered that the life insurance money be split 50-50 between Susan Powell's father and three members of Josh Powell's family: his brothers, Michael and John, and his sister, Alina. The riders from New York Life covering Josh and Susan Powell's two sons, Charlie and Braden, were also split 50-50 between the two families.
The Cox family’s lawyer, Anne Bremner, expressed skepticism about the ruling, arguing that the Powells shouldn't be entitled to any of the insurance money under Washington's slayer statute. She also questioned whether Steven Powell, Josh Powell's father, had truly waived any claims to the insurance payout. Bremner noted that the Cox family intended to use the insurance money to support various organizations and foundations.
The situation surrounding the life insurance policy was complicated by Josh Powell's actions before his death. In 2011, he changed the beneficiary of the life insurance policy, removing the family trust and designating his siblings as the beneficiaries. This resulted in Susan Powell's father losing his claim on the life insurance. Powell made further changes in December 2011, just two months before he killed himself and his children, designating his brother Michael as the primary beneficiary.
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Susan Powell's family settled a court battle over the life insurance money
Susan Powell disappeared in 2009 and has never been found. Her husband, Josh Powell, was the only suspect in her disappearance, but he was never arrested. In February 2012, Josh killed himself and the couple's two sons.
In the months before his death, Josh altered the terms of a $2.5 million life insurance policy on himself, his sons, and his missing wife, Susan. He changed the beneficiary of the life insurance from the family trust to his siblings. As a result, Susan's father, Chuck Cox, lost his claim on the life insurance.
Following Josh's death, his siblings tried to claim the life insurance money. The insurance company petitioned the court to decide who should receive the payout, as Josh was considered a "slayer" of his children and a "person of interest" in his wife's disappearance, terms that could disqualify him and his family as beneficiaries.
While the details of the settlement were not publicly disclosed, it was reported that Josh Powell's sister, Alina Powell, and his mother, Terrica Powell, planned on donating the life insurance money to charity.
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Frequently asked questions
Susan Powell was reported missing in December 2009, and her body has never been found. Josh Powell claimed he had gone on a camping trip with their sons in the middle of the night, while Susan stayed home because she was tired. However, Susan's friend, Kiirsi Hellewell, doubted this story, stating that Susan would never have allowed him to take the boys out in the winter to the desert in the middle of the night. Josh Powell was also the one who filed paperwork to withdraw money from her retirement account about 10 days after she disappeared.
Josh Powell killed himself and murdered his two young sons, Braden and Charlie, during a supervised-custody visit in February 2012.
Josh and Susan Powell took out life insurance policies of $1 million each on themselves and $250,000 each on their children. Initially, they designated each other as beneficiaries. Later, they set up a family trust, naming each of their fathers as beneficiaries. In 2011, Josh changed the beneficiary to his brother, Michael Powell, with his sister, Alina Powell, and father, Stephen Powell, receiving smaller percentages.
Josh Powell's family, including his mother, Terrica Powell, and sister, Alina Powell, argued that they were entitled to half the proceeds from the life insurance policies taken out on Susan, Josh, and their sons. They believed that Susan's father, Chuck Cox, had wrongly shut them out of the estate in 2013.
A judge ruled that the life insurance money would be split 50-50 between Susan's father, Chuck Cox, and three members of Josh Powell's family: his brothers, Michael and John, and his sister, Alina.
