If the house is getting sold under fair market value (usually the current tax assessor value) within family or friend of the family, I would really encourage you to get an appraisal done. It needs to be done by a licensed & registered appraiser for however it's done in your state. The Realtor comps is terrific but is not a substitute for what the appraiser report does. Appraiser document is legal so if there is any blowback from family later on, or from medicaid, having an appraisal can be quite good to have.
Why for medicaid? Well If mom should use up all her spend down from the sale of her home & car & applies for Medicaid, and if there was a wide difference between the assessor value & the sale value, Medicaid could consider the difference "gifting" if the house was sold to family or friend of family.
If the house has decades of delayed maintenance & difference from assessor value is looking like its going to be substantial - like more than 30% - you might also want to get an inspection done. Again by one licensed & registered with the state. Both inspection & appraisal seem to base cost on square footage above a set minimum fee. Maybe run $ 300 - 500 each.
Reverse roles is totally spot on about keeping records. If you live in a humid area, or in a flood risk area, you may want to put paperwork into 2 gallon Ziplock freeze bags & then into their storage bins.
Depends on many factors. All POA powers are different. Is it a Durable POA , does your parent agree or have dementia, does she have a life estate on the house ? You have to get 3 real estate written estimates and a paid appraisal of the house first.it has to be sold or bought for fair market value minus a realtors fee and minus any concessions if necessary. The money then goes into a trust bank acct. Every penny used must be documented with also keeping a receipt. If its for home care you can draw up a caregivers contract and pay yourself if your parent needs full time care, or You can put it into an irrevocable trust and not touch for 5 years so medicaid cant get it.you could also rent her house for her care. Keep perfect records in case you do need medicaid down the road. Also keep a daily journal of her care, youll need it all! I just applied and out of 5 years they questioned 5 lousy checks, 3 were under $50! I never thought my mom would live this long. Oh the boxes and containers of paperwork, journals, bills and all is overwhelming my entire spare room, no lie.
Read your POA. Mine gives me the right to sell and buy. The realtor has a copy. My SIL started her Dad on Medicaid. Once the house sold, Medicaid stopped and she had to spend down the proceeds of the house then pickup Medicaid. That wasin PA. My POA is in NJ.
Wrong wrong wrong. For god sakes if the attorney says put her in guardianship all the money will go to pay attorney fees and not to your mothers care. Stay out of probate court! I had a POA...was told to get guardianship and it cost 200 thousand dollars and took 5 years because my sister objected. Yes you can sell the house and car and put the money in an account that is used only for her care.
Yes, if the language provides that you can do so. Read the POA document carefully to see what authority you have and the basis for activation of POA authority.
Yes i agree an elder law attorney would be a good idea. You would need to see if the POA gives you broad powers or limited powers. The POA should state that you are able to transact real estate transactions on her behalf. Some POAs give only limited power such as check writing, bill payment, but not more complex dealings. Check your POA to see exactly how it was structured. Consulting an attorney will help you plan for the long haul and not just short term. Others are correct, the money from home will go quickly if mom needs nursing home or round the clock care. Also remember if Medicaid is in her future no gifting of money is allowed 5 yrs prior to applying. Just some things to keep in mind.
Definitely see an elder lawyer. You may be able to save the house and the car and get medicaid to pay for her care. You would be surprised how quickly the proceeds will disappear, and then what?
A POA can only carry out the wishes of the grantor. This is where it can get sticky when the grantor is confused, so get an attorney to guide you through the sale of the property. If Medicaid is in the picture, this can be a complex issue that prevents closing the sale.
Why for medicaid? Well If mom should use up all her spend down from the sale of her home & car & applies for Medicaid, and if there was a wide difference between the assessor value & the sale value, Medicaid could consider the difference "gifting" if the house was sold to family or friend of family.
If the house has decades of delayed maintenance & difference from assessor value is looking like its going to be substantial - like more than 30% - you might also want to get an inspection done. Again by one licensed & registered with the state. Both inspection & appraisal seem to base cost on square footage above a set minimum fee. Maybe run $ 300 - 500 each.
Reverse roles is totally spot on about keeping records. If you live in a humid area, or in a flood risk area, you may want to put paperwork into 2 gallon Ziplock freeze bags & then into their storage bins.