This is one of those less cut and dried mechanical things.
You should change the fluid at the recommended interval. Not doings so WILL increase wear in your transmission. The fluid has started to break down, the filter is at less then great flow, and little pieces of clutch pack are floating around in your transmission. The fluid in your trans both cleans and cools a bunch of little hydraluic valves and clutches that are holding the full torque of your engine, so there's a lot of room for wear there.
*but*
Not changing it won't cause your trans to sieze tomorrow. Or even next week. The actual amount that trans wear will be increased is dependent on a whole bunch of factors, and is impossable to quantify. It could be that it will drop your trans life from 150,000 miles to 145,000 miles. Or it could drop the life from 100,000 mi to 65,000mi.(actually that's pretty extreme. I doubt bad fluid could drop it that far, but you get the idea) It depends on a lot.
The question you need to answer is how much the $250 is worth to you now vs. longer life on the far end of the car's life. If Dad's driving a KIA around for another year and dumping it, or is one of those folks that sells a car at X miles no matter what, then to heck with it. If Dad's going to hold on to this thing untill the wheels fall off (he's making a bad call, it's a KIA) and it would be better to keep up on fluid changes now, as that will extend the time till catastrophic failure. FWIW, I do all my (street) trans fluids every 50,000mi, and get 200,000-250,000 miles from my non-raced transmissions pretty reliably. (C6's and AOD's).
Also, if you're at all mechanicly inclined just do it yourself. Mostly an auto trans service is drop the pan, pull off the filter, new pan and gasket, fill with new fluid. Parts should be around $60, and the part that takes the most time is cleaning ATF off your arms. (There's rarely a drain plug).
In short, I recommend it, but the car probably won't self destruct if you don't.