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As power of attorney, can I sell my parents' house?

2 answers | Last updated: Dec 30, 2014
An anonymous caregiver asked...

Caring.com User - Barbara Kate Repa
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Barbara Repa, a Caring.com senior editor, is an attorney, a journalist specializing in aging issues, and the author of Your Rights in...
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The answer should be contained in the power of attorney document itself"”although you may have to wade through some legal gobbledygook and do a bit more legwork to get the See also:
Can my parent give durable power of attorney for healthcare to one child, and durable power of attorney for finance to another?
job done.

First thing to check is whether your power as agent has actually taken effect. Many DPAs, for example, require that a doctor"”and sometimes two of them"”certify in writing that the principal is mentally incapacitated before the agent will be empowered. If you don't have this paperwork, secure it.

Also check the wording of the DPA in the section that spells out the agent's powers. Most are quite specific about what the agent can do"”and by interpretation, the powers that are not specifically named may not be bestowed.

Sometimes, however, there is a sort of a catchall clause that specifies that an agent must take steps that are "reasonably and practically necessary" to carry out the principal's best interests. If you anticipate that your mother or any other potentially interested party may challenge your decision to sell, it may be worthwhile to get a signed statement from an experiences expert such as a financial planner or estate planning attorney"”just to act a insurance and evidence that the decision is objectively sound.

Your final hurdle might be getting the financial institutions and other agencies involved in the sale to accept your authority. If the DPA and evidence that it is in effect are sound, this should be automatic. Most will require that you produce a copy of the DPA and doctors' certificates as proof.

But some institutions are sticklers for their own rules"”requiring you to complete an additional document that certifies you are empowered to make the sale. And some will buck, for example, if the name of person on the house title is even slightly different than the one on the DPA: "Mary A. Smith" as opposed to "Mary Smith." These hurdles are not insurmountable, but can be annoying"”and can mean you will need to produce additional documents, such as a copy of a birth certificate, Social Security card, or mail showing the alternative forms of the name.

To avoid delays and minimize angst, prepare by asking representatives at each institution involved what it requires.


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CA-Claire answered...

Thank you Barbara for such a complete answer. As someone who has had to stumble through a lot of this type of things over the past 7 years for my husband and mother (both deceased now), and my father, currently 91 and also in Assisted Living, Institutions can choose to accept the document or not. Financial Institutions, and especially on Real Estate Transactions due to the high rate of fraudulent transactions, may choose to have 'their' Legal department look over the paperwork with a fine-toothed comb. This will take time and lots of followup calls AND visits.

Here in California, each estate planning attorney has their interpretation of the law and how documents needs to be drawn up. Luckily my sister and I share duties - she lives 6 hours drive from Dad, I live 15 minutes. She is semi-retired and I work full time. She is really good with finances, bookkeeping, and keeping fabulous records. I am a really good Care Manager and Medical Advocate, and have no children, and am a widow. I can pop over in the evenings or during the night, if needed.

Not everyone will choose to work with you, but if you remain pleasant, business-like and professional, making clear that you are working to help your loved one, most will try to work with you to help. Best wishes on your caregiving journey!


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