SHERMAN, Texas (LN) — U.S. District Judge Amos L. Mazzant denied the Lyon heirs' motion for partial summary judgment in an interpleader action brought by Allianz Life Insurance Company, ruling disputed facts remain over whether Patrick Kreiner acted before or after Kristin's death when he submitted a beneficiary change request using a Statutory Durable Power of Attorney.
The Lyon Defendants—Steve R. Lyon, Anna Lyon, and Bonnie R. Lindsly—sought to knock out the August 3, 2024 request that Patrick Kreiner submitted to Allianz, arguing the power of attorney terminated when Kristin died at 1:23 p.m. that day.
Patrick Kreiner's fax to Allianz bears a header showing transmission at 4:18 p.m. on August 3, 2024, according to the record. The Kreiner Defendants contend the request was sent at 11:22 a.m., before Kristin's death, citing a fax confirmation record.
After reviewing the competing versions of the fax, Mazzant found the Lyon Defendants failed to demonstrate no material issue of fact exists as to timing.
The Lyon Defendants also argued Patrick lacked authority to change beneficiaries because the Power of Attorney did not expressly grant that right. The court disagreed, pointing to Texas Estates Code Section 752.108(a)(10), which empowers an attorney in fact to change annuity beneficiaries based on general authority conferred under Subchapter C.
However, Mazzant agreed with the Lyon Defendants on a third ground: Patrick could not name himself as a beneficiary. Under Section 752.108(b), an agent may be designated a beneficiary only to the extent the principal expressly granted that authority or previously named the agent as a beneficiary. Kristin did neither, the court found.
The court declined to consider Patrick's argument that his designation was fair and corroborated by Kristin's will, saying such an analysis would improperly extend testamentary intent to a non-probate asset.
Citing Transamerica Life Insurance Co. v. Quarm, the court noted that even if the August 3 request was timely, Patrick was authorized to designate the other Kreiner Defendants—Thomas, Timothy, and Jerome—as beneficiaries, just not himself.
Because the transmission timing remains unresolved, the Lyon Defendants' motion was denied in full.
Allianz deposited the interpleaded funds into the court registry on December 30, 2025, and was dismissed. The competing beneficiary claims remain pending.