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?
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
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
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
