Can I sell a my mothers home if I have power of attorney?

[mgarczynski]

What is the name of your state (only U.S. law)? Maryland

My mother has severe Alzheimer's Disease and is in an Assisted Living facility. My financial advisor has indicated the need to sell her home to avoid a high capital gains tax penalty. He said the home needed to be her primary residence for 2 of the last 5 years and we are coming to the end of the second year. I have power of attorney and am joint owner of her checking/savings account to manage her finances. My name is not on the deed or the mortgage.

So my questions are:
Can I sell the house or is there something else needed?
Would the proceeds from the sale go the checking account or does an estate need to be created?
At the time of her death, would that money be part of the estate or pass to me as joint owner of the account?

Thanks

 

[Ohiogal]

What is the name of your state (only U.S. law)? Maryland

My mother has severe Alzheimer's Disease and is in an Assisted Living facility. My financial advisor has indicated the need to sell her home to avoid a high capital gains tax penalty. He said the home needed to be her primary residence for 2 of the last 5 years and we are coming to the end of the second year. I have power of attorney and am joint owner of her checking/savings account to manage her finances. My name is not on the deed or the mortgage.

So my questions are:
Can I sell the house or is there something else needed?
Would the proceeds from the sale go the checking account or does an estate need to be created?
At the time of her death, would that money be part of the estate or pass to me as joint owner of the account?

Thanks

Question: Is your mother ever going to return home?

 

[LdiJ]

What is the name of your state (only U.S. law)? Maryland

My mother has severe Alzheimer's Disease and is in an Assisted Living facility. My financial advisor has indicated the need to sell her home to avoid a high capital gains tax penalty. He said the home needed to be her primary residence for 2 of the last 5 years and we are coming to the end of the second year. I have power of attorney and am joint owner of her checking/savings account to manage her finances. My name is not on the deed or the mortgage.

So my questions are:
Can I sell the house or is there something else needed?
Would the proceeds from the sale go the checking account or does an estate need to be created?
At the time of her death, would that money be part of the estate or pass to me as joint owner of the account?

Thanks

How is your mother paying for the assisted living facility?

 

[tranquility]

You will have to have a durable power of attorney that has general powers and the right to sell the property is enumerated, yes.

As to the 2 of the last 5 years:

(ii) Determination of use during periods of out-of-residence care. If a taxpayer has become physically or mentally incapable of self-care and the taxpayer sells or exchanges property that the taxpayer owned and used as the taxpayer's principal residence for periods aggregating at least 1 year during the 5-year period preceding the sale or exchange, the taxpayer is treated as using the property as the taxpayer's principal residence for any period of time during the 5-year period in which the taxpayer owns the property and resides in any facility (including a nursing home) licensed by a State or political subdivision to care for an individual in the taxpayer's condition.

You also need to review with an elder law attorney if mother is getting or will get medicaid. Treatment of the residence will differ from treatment of the case from its sale.

 

[OHRoadwarrior]

Even if you have power of attorney for mom that allows you to sell the property, you cannot do so to increase your inheritance. The POA is to allow you to make choices for moms benefit, not yours.