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I'm my father's durable POA. Long story short, he wants to sell his house and has already found a buyer ( without telling me until after the fact). His house is still in his name but he says he wants to give me the money from the sell. In reading the POA is says this may be illegal. I can not help but wonder what he is really up to. I understand him wanting to sell because renting has not worked out. I did search this site I could not find anything relating to real estate.

Ohmygosh! He never stops with you.

Selling the house needs to be done so carefully, he may have a buyer because he is offering a super deal.

I would encourage you to get an appraisal done with a certified inspection, these items will protect you if medicaid decides the house wasn't sold for fair market value. Because the house MUST sell for FMV, it is critical if medicaid is in his future.

Use the money only for dad and his care, then he can not run FOG on you, heck he might even try to blackmail you with turning you in for profiting as his POA.

He has show you who he is, believe him.
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Reply to Isthisrealyreal
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Faithful,
In your answers below you are saying your father is completely competent.
Yet you say he doesn't believe you when you tell him that Medicaid will not pay for him if he gifts money or money from home or home to you.
THAT ISN'T a competent man.
You are his POA.
He needs to be assessed for dementia.
I would contact an attorney at once re this man attempting to buy a home from him without a realtor.
I would next contact MD for full assessment.
WHATEVER YOU DO don't accept money or cash or a home or the proceeds of the home into your own money .
Please see an attorney about this.
You and you DAD cannot afford to go wrong in this sale of a home; it would be catastrophic.
Wish you good luck.
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faithfulbeauty Mar 2, 2025
@Alvadeer,
I may have misspoken, I apologize. He is not completely competent. I really think his goal is to sell the house, try to get kicked out of the facility and try to stay with me which will not work. I will be speaking to an attorney tomorrow.
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Is your father competent? If NO then he can not sell the house nor can he make any legal transactions, sign any contracts.
Are you currently acting as POA? If you are currently acting as POA you know that he can not sell the house nor can he sign any contracts.

If he is competent and you are not acting as POA currently he can do what he wants with any of his possessions.
Just be aware that if he sells the house below market value. If he gifts the money to anyone he may not qualify for Medicaid if the need arises in the near future.
good possibility that you might also have to report the gift as income, can you afford to pay the taxes on the gift? Or he may have to pay a gift tax.

There are others that know more about legal stuff than I do. But I would consult an Elder Care Attorney.
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faithfulbeauty Mar 2, 2025
He’s not competent enough to make decisions. I’m his POA. But he is clever. I definitely thought about the taxes I would have to pay. This is such a difficult situation and I’m tired of the stress.
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Is this his primary residence? Because you reference that "renting has not worked out". So, is he renting this house or does he own it?

If this is his primary residence, where does he intend to live once he sells it? And why would he want to give the money of the sale of his primary home to you and not use it for himself to find a new place to live? Does he figure to give you the proceeds in return for you allowing him to live with you in your home?
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faithfulbeauty Mar 2, 2025
He resides in a facility and we have been renting the house . I agree with you. I think he thinks if he gives me the money, then I’m obligated to allow him to stay with me. He is not competent enough to make decisions but he’s clever. He wants to leave the facility.
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He cannot give you the money. Why, because of Medicaid. Even if he now is paying privately his money may run out and if that happens within the 5 year lookback, and Dad has given you the proceeds from the sale of the house, thats gifting and he will be penalized. If he sells the house, the proceeds should be put aside for any future care his needs. If on Medicaid now, it will stop, the proceeds spent down and then back on Medicaid. House must be sold at Market value whether on Medicaid or private pay.

Has he been declared incompetent to make informed dedisions by a doctor or two? If so, he cannot enter into a contract. You need to notify the realtor of this.
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Faithful, if you don't understand POA at this point it is very important that you do, so I am sending you to an attorney.
If Dad is still competent he can sell his home any time he wishes.
But no, whether you are POA or not you cannot accept the gifting of this money, and the fact he is talking of such a thing makes me fear he is losing competency.

If an elder gifts money, home, anything else to ANYONE he cannot get any help from Medicaid for 5 years. That's the lookback on gifting in all states save my own California (2 1/2 years). He is of an age and may need care at any moment. This would be disasterous.

As to your being POA, I am sorry you took that on, but you are correct that it is against the law for you to be enriched by your principle. You have now a Fiduciary duty under the law. This is a legal issue.

If your father begins to help sell this home I would BE THERE big time. Because I am now worried re his competency and fear an unscrupulous attorney could take advantage of him. If he does sell the money goes into his own bank and investments in HIS OWN NAME with you as a signee as POA and keeping meticulous records when you have to take over for him.
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faithfulbeauty Mar 2, 2025
@Alvadeer,
He has stated that he’s not using an attorney or realtor to sell. He has been talking to someone who wants to buy. I just happen to visit yesterday and the guy called and I heard them talking. He’s already had someone help him fax the guy information about his house. I didn’t know this until yesterday. Also, he is not fully competent
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Be very careful when dealing with a property with Out a Realtor and a real estate attorney . This sounds Fishy to me and could be a scam . if this house was a rental property he will Pay hefty capital gains tax ( Look that One up ) It is best if it goes to you in a trust Once he Passes . You really need a elder attorney to help you . He should not be randomly be selling a House . We Had a House that was a money Pit - Just a Nightmare house - I fixed it up and it took a Lot of work to sell . My father threw all the Money in the stock exchange with out telling me . Men do things Like this so be careful .
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As I think about everything, his plan for many years has been to try to force me to take care of him which is why he would not put his house in my name years ago. He also has had land and etc. None of it in my name. One piece of land he had, he told me that he was going to give it to me ( this was many years ago) but he changed his mind. Now here we are. It is too late to put the house in my name. If he sells, it will be reported as income for him and as many of you have said, this will make it hard for him to get Medicaid if needed later on. It is just a mess. I did speak with guy ( I found out who it is) who is interested in the house. He was very nice and understands my concerns. I also told him that dad does not think clearly all the time. I just ask that all of you pray or me. Something has to be done with the house. The renter is not working out and I do not want the house. I would never move in because then, he will think he can come back home.
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BurntCaregiver Mar 3, 2025
Faithfulbeauty, I am sorry for what you're going through. I really am. You are sure not alone though. This is a common thing in families. Aging parents will hoard everything they have and guard it like a dragon. They think this will be their old age insurance policy that will force their adult kids to take care of them and keep them out of LTC if they want to inherit. It very rarely works out this way.

Most of the time the kids place the parent anyway and just let the nursing home, memory care, assisted living take it all. It's not worth the price of their own homes, jobs, families, marriages, and lives to maybe potentially inherit something at some point.

It's not worth it.
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You need to stop the sale and separate him from his assets completely so he can’t sell on his own. Getting him declared incompetent through the courts might be needed. Definitely see an attorney.
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Reply to ShirleyDot
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@AlvaDeer
I have talked to him and told him that he can not sell the house. I tried again to explain why. I explained all the legal ramifications and he still does not believe me but as you said I have an obligation to stop this and that is what I have done. He is not fully competent enough and continues to argue but he has always argued with me when I don't agree with him.
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