Phoenix, AZ asked in Estate Planning and Elder Law for New York

Q: My sister POA of my Mom's affairs. Mom is currently 95 and in assisted living. We need to get a loan on the house Mom

own's. So we can renovate and rent the two family and pay for assisted living. Mom is only one on deed. House is in trust of myself and sister. Sister has bad credit. I am one who needs to borrow on that property and get renovations done. Is it possible for me to do this?

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2 Lawyer Answers
Kenneth V Zichi
Kenneth V Zichi
  • Estate Planning Lawyer
  • Howell, MI

A: Hard to say for sure as you're using terms that have specific and contradictory legal meanings. Does your mom own the house or is it in a 'trust'?

Why should your PERSONAL credit ratings matter? If your mom owns the house and the loan is for her, HER credit rating matters. Getting a loan on a house in trust is often difficult and cumbersome.

You need to consult with a local attorney to both figure out what exactly you and/or your mother owns, and how to get the money out of those assets needed to care for her during her lifetime. You may need to just SELL the house, and use that money for her care, which means "you" won't get anything from your mother's estate other than what might be left over from the sale, but that is probably what SHOULD happen both for your mother's interests, and to insure she's qualified to receive medicaid benefits when the money runs out.

There are tricks and 'traps' here so I would urge you to consult with a local estate planning attorney. Each state's rules are different, and you need someone local who can guide you through the process!

-- This answer is offered for informational purposes only and does not constitute legal advice or create an attorney/client relationship.

I am licensed to practice in Michigan only. Please seek competent local legal help if you feel you need legal advice

1 user found this answer helpful

Michael David Siegel
Michael David Siegel
  • New York, NY
  • Licensed in New York

A: You have two inconsistent statements. You say your mom is the only one on deed, but you also say the house is in trust. Both cannot be true. However, the answer here depends on that fact.

1 user found this answer helpful

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