Q: My mother deeded her house to me and retains a life estate. What are the implications of selling the house now?
The life estate arrangement was carried out two years ago in case she needed to go on Medicaid and go into a nursing home - to start the lookback period on asset transfers. However, the house is in very poor shape and not handicap accessible. She also cannot live alone and needs help taking care of herself. What are the implications of selling the house now? What would need to be done? I'm her only child and only living immediate family member. I also have durable POA. The plan is for her and my family to move into another house together.
A: You will both need to sign the deed to the buyer and the listing agreement with the broker. If your mother is mentally disabled or diminished, you might be able to use the durable power of attorney if it was drafted to cover that, but you may wish to retain counsel and be cautious. If you are a beneficiary of the transaction in selling the house, your sale using the power of attorney could be found to be self-dealing and a breach of your fiduciary duties.
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