Tax Law

Tax Law What is the name of your state? LA
Are there any special laws pertaining to the sale of a residence and gifting the proceeds to the children. Are there tax penalties. My mom is an alzheimer patient, she really doesn't need the money, she has asigned power of attorney to one of her children, can the proceeds be distributed to only the children?
Thanks,

[abezon]

Mom can sell the house & exclude $250,000 of gain. (Living in a nursing home is considered to be living in your personal residence as long as you aren't renting out your PR.) Gifting the money to the kids is a problem -- mom's power of attorney agent MUST act in *mom's* best interests, not in the kids' interests. It's usually not in mom's best interest to give away her money! Especially when mom's will hasn't been probated (maybe not even read). This kind of transaction would require court approval to protect the attorney in fact from lawsuits for breach of fiduciary duty.