Am I, as POA, responsible for my parents' debts, and will Medicaid take the house?
If you have never personally assumed the responsibilty for your mother's nursing home care, you cannot be held personally responsible if you have acted on her behalf solely as her agent under her Durable Power of Attorney.
In regard to your father's loan, if the debt was solely that of your late father, your mother was not responsible for that debt following his death. The bank could take the position that your mother ratified the loan by making payments and perhaps getting some benefit from the loan. You should consult a lawyer and provide him with all documentation and communications between your mother, father and the bank pertaining to the loan to determine if there is any responsibilty on the part of your mother.
The deed with the life estate, if done properly, overrides the Will. The life estate made it more difficult for her creditors to take action during her lifetime, but not impossible. Once she died, the property would pass to you free of her creditors if they did not take action prior to her death and the life estate was set up prior to her incurring the debts to which you refer.
In regard to the accessibility of your mother's probate assets to her creditors, the claims of creditors come before those people named as inheriting the property in a Will.
You have a lot of concerns that indicate you need legal advice from an experienced probate attorney in your state. I urge you to contact a lawyer as soon as possible.
Recommended for you
- Power of Attorney for Finances: A Step-By-Step Guide
- What is the difference between DPOA and POA?
- Can you go from durable to irrevocable power of attorney?
- Your Parents' Estate: Not a Windfall Anymore
- Where can I get free legal help with estate planning?
- See all 571 questions about Legal and Financial Planning for Eldercare
