Q: My father recently remarried, a year after my mother's death. He has an ironclad (so he says) prenuptial agreement. He is pretty savvy, so I don't doubt it. His new wife is independently wealthy and has no reason to want his assets. He has recently been put under hospice care, and his death is right around the corner. She has been making noises about having things changed, but I'm not sure what her plans are or what she can do legally. She has tried to put the medical power of attorney into her name (from mine) and take away my legal guardianship. He is not lucid at this time. If his bank accounts are only in his name and his IRAs and everything in the will were left to my siblings and me, can she touch us? Our mother's estate is in a disclaimer trust; half of what she and my father had together is left to us upon his death. His portion immediately moves to the estate. It's a large sum of money and assets, about $4 million total. I am the executor of his estate and will, but I'm leery of this impending problem.

A: You will have to seek the services of an attorney, which you will be doing anyway upon your dad's demise. Whether or not his new wife can change the medical power of attorney is a question I'm unable to answer, but make sure that your attorney is aware of her intentions. The fact that he's not lucid would obviate any changes in his will, even if he chose to do so.

(ENLARGE)

Bruce Williams

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You mentioned the lady is independently wealthy, but that doesn't make her immune from greed. I can't tell you how to head off the impending problem. I can tell you that you'd be wise to bring all these details to your attorney's attention and have him take all necessary steps to be certain your interests are protected.

Q: I have three grandchildren (3, 5 and 13 years old) and would like to start an insurance policy for them in case of death or that can be used for educational purposes. What kind of policy would be the best?

A: There are many insurance agents who would love to see people buy life insurance on children. I see no purpose served by that. Maybe if you want to have a minimal amount of money so that the final expenses would be taken care of should there be a tragedy. If your primary concern is to provide money for college, there is any number of 529 plans — but a Roth IRA or Coverdell Education Savings Account will far better serve that need.

Q: I was told to invest in gold and silver and that there was a big return on the investment. Is this true? How do I go about investing in precious metals?

A: First of all, I consider gold and silver to be speculations — not investments — especially if you're going to take possession of the metal. There is no question, however, that over the past few months, both of these metals have appreciated materially in value. People are investing in metals because they distrust some currencies. In general, if you want to invest a few dollars in gold coins, I have no great quarrel with that. On balance, you are far better served to invest in the securities of companies that either mine or refine these metals.

Bruce Williams, a financial adviser, answers consumer and personal finance questions from readers. Write him at Bruce Williams, Buyer's Edge, The Atlanta Journal-Constitution, 72 Marietta St. N.W., Atlanta, GA 30303 or e-mail buyersedge@ajc.com and put "comment for Bruce" in the subject line.