Can the DPOA purchase her Dad's house at 50% below FMV? - AgingCare.com

Can the DPOA purchase her Dad's house at 50% below FMV?

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Dad has 2 dpoa's. I'm one my sister is the other. I take him to all doctors spots. She pays bills. Dad has numerous complex health issues with co morbidities. He is very sharp and all will state that. He no longer drives, writes checks, doesn't understand his cash management acvount and how his loan works (collateralized). He is vulnerable and easy to manipulate. Malnutrition and meds play a role as well. My sister yelled at him about selling his house (largest asset) to him for $400k. The FMV is about $750. He usually complies with screamers as he wants it to stop. Is there any recourse? He is 80. Dependent on others. Physically frail. Walking from bed to couch is exhausting. He has left $465 in Roth, condo worth $300k (collateralized) and $200k cash. He said she gets nothing else for inheritance but she did not put anything in writing and still owes him $130k from the transaction. Again, nothing in writing. He doesn't want to deal with anything unpleasant. He feels I say "ugly things" but I'm just trying to explain what has been done.

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An attorney drew up the papers, exactly the same. We both have equal powers. If a guardian is needed it states I (or she) is to be appointed. We can both set up and fund trusts. Etc. We were supposed to take him back to fo his trust and will but he doesn't want to bother and sis is not interested. I do not understand why the attorney did this either. But my father will never agree to taking away power from one...he does not like controversy nor confrontation. I think Pam is right to request an I dependent guardianship. The sister he was most concerned w was his daughter who has been on disability. She was the one he should have taken care of.
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I don't know about that 2 DPOA bit. I mean, one must have been signed on one date, and one on another date, and the form always says that it supersedes and replaces any other DPOA, and it also includes a form for "Revocation of POA". So I seriously doubt whether anyone could have TWO of the same at the same time. Only one of these POA is valid, better find out which is more recently dated. And if your dad wants to sell home at below value, that's his choice, as.long as he is competent (Medicaid probably won't be needed). But if he has a stroke tonite and becomes comatose, who is going to be making decisions? You really ought to find out which DPOA is valid, OR, point out to your dad the problems and suggest he revoke both and choose One and Only One. Never a good idea to have more than one person be POA unless they are sharing the same heart and mouth.
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Your sister is greedy and evil. What she did may have been "legal", but should Dad need Medicaid within 5 years, his application will be rejected.
If I were you, I would immediately petition the Surrogate's Court for an independent Guardian to be appointed to save him from the talons of a raptor.
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There is nothing wrong with a parent giving something to a child, in this case 50% of the FMV of a house. If he is of sound mind, or at least not legally incompetent, he can give away the whole house. He could give all his cash to establish a luxury hotel for abandoned pet snakes. His money. His decisions.

What is wrong is for an adult child (or anyone else) to take advantage of a parent's vulnerabilities and cause him to make decisions not in his best interest. If you feel that is going on, and you have evidence, you need to address it through the courts.

I can see how this house sale is not in your best interest -- it reduces the total available for inheritance later. Is it hurting Dad? Is it likely to prevent him from taking care of his own needs?

I'm not trying to say the Sis is an upstanding citizen and I approve of what you describe. But if this is investigated and Dad confirms that he wants to give her a huge break in selling her the house, I'm not sure the law can stop him.
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I do not have co-poa. The lawyer set us both up to act independently. So we can basically u do each other. I warned both my father and sis that it seemed to be a conflict of interest. I called the atty who gave us both dpoa and he stated that it was perfectly legal. That it is the closing attorneys job to ensure that my dad is of sound mind/capacity at the time of transaction and that courts recognize that elders go in and out of capacity all the time. He did state that my sis called him the previous day and they had a conversation which he of course could not relay. I just don't understand how I could be I. Trouble. I feel stuck that I want to protect dad but he and his daughter (sis) feel the transaction is fine. Dads emotionally wants her to have house. I want her to correct situation not end up in jail. she argues he wants her to have it and her job as dpoa is to carry out his wishes.
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Well the one bright spot in all this is that based on what you've said, your Dad has substantial resources so he will probably never need to apply for Medicaid. Sissy has lucked out there as Medicaid would place a transfer penalty on the 50% difference of the FMV to what house sold to her for plus interest.

Sissy is totally taking advantage of a vulnerable adult. Being co-POA doesn't give her the excuse to do this through. Now the hard part in all this is that IF you contact APS on this or speak with good legal on this, that you all could find that the state comes in to establish guardianship over dad. You as coPOA have not done your required duty as POA; and then Sissy has exploited her relationship with dad. Someone with the assets your Dad has is a good candidate for the state to grant an independent guardianship of and a judge would probably do this. Neither you or Sissy would get it. So think carefully before you do things as the result may find Dad completely removed from you or you are limited to time with Dad.

The only way around this - imho - is for you to go to court to get 100% guardianship over Dad. Now you will have to document with bank statements and other financial details all the improprieties that Sissy has done; you will need to do correspondence to Sissy sent certified mail to show you are now trying to set matters straight. You need to probably do this for the better part of next year, and every contact with Dad & Sissy is noted by you with details. Then you go and get your own elder law attorney to go to court to petition for guardianship. You will have to pay for this (I'd set aside 15K for it) but once it's granted to you the $ is paid to you from his assets. None of this is easy and Sissy will likely challenge you on this and the legal costs & court showings could be a lot. Good luck.
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Also, re: malnutrition, call APS.
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Call the D.A.'s office and put the information in their hands.
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