Family ownership issues

[soninlaw]

What is the name of your state?What is the name of your state? Florida

A father gave his son power of attorney to sell property he and his wife owned in Delaware. Before that property was sold, the son purchased a home for his parents in Florida and moved them there. Two years later the Delaware property was sold. About a year after that the father found out that the son and the son's wife were named as the owners on the deed, tax records, etc. of the Florida house. Before that he was under the impression that he and his wife were the owners. No money from the proceeds of the Delaware sale came to the parents and no contract or agreement was made to define the arrangement.

When confronted with these facts, the son and his wife granted the parents a deed of indenture for a life estate in the Florida property. That deed says that the parents jointly have the use and benefit of all equity in the property (among other things). Does this deed allow them to take a reverse mortgage on the house that will provide a stream of income. They are in their seventies and have only Social Security income.

At the outset all parties were residents of Delaware. Now all are residents in Florida. The son and his wife lived in Delaware (not on the parents property) for two years after the parents moved to Florida.

 

[BelizeBreeze]

The parents have the right to use the property in Florida for the term of their life. Nothing more.

Unless a contract of understanding existed between the parties that the proceeds form the Delaware sale would be put towards ownership in the Florida property, the parents are out of luck.

The only thing they MIGHT have is fraud or elder abuse, both hard to prove based on your post.

 

[seniorjudge]

What is the name of your state?What is the name of your state? Florida

A father gave his son power of attorney to sell property he and his wife owned in Delaware. Before that property was sold, the son purchased a home for his parents in Florida and moved them there. Two years later the Delaware property was sold. About a year after that the father found out that the son and the son's wife were named as the owners on the deed, tax records, etc. of the Florida house. Before that he was under the impression that he and his wife were the owners. No money from the proceeds of the Delaware sale came to the parents and no contract or agreement was made to define the arrangement.

When confronted with these facts, the son and his wife granted the parents a deed of indenture for a life estate in the Florida property. That deed says that the parents jointly have the use and benefit of all equity in the property (among other things). Does this deed allow them to take a reverse mortgage on the house that will provide a stream of income. They are in their seventies and have only Social Security income.

At the outset all parties were residents of Delaware. Now all are residents in Florida. The son and his wife lived in Delaware (not on the parents property) for two years after the parents moved to Florida.

Q: Does this deed allow them to take a reverse mortgage on the house that will provide a stream of income.

A: I have never heard of a reverse mortgage being granted on a life estate.

 

[soninlaw]

Thank you for your replies. They confirm what I was afraid of.

I did open an elder abuse case with the FL Dept. of Welfare but the investigation was called off by the parents after the son threw a tantrum and then offered them the life estate. They do not understand that their son has taken their asset and they are afraid to alienate him because they feel they will have to depend on him for financial support, transportation, etc., in the future. They do not fully grasp that they could be self-sufficient if they could draw on their asset. Their other children do not live nearby.

The Florida Dept. of Welfare stated that if fraud occurred it was in Delaware and they could not pursue it. Now that all the parties live in Florida, how would a fraud charge in Delaware be prosecuted? And is there a statute of limitation?

Based on the information you have given, this is probably more of an asset or elder law issue and I will post it the forum that deals with those issues.

Thanks again.

 

[seniorjudge]

Thank you for your replies. They confirm what I was afraid of.

I did open an elder abuse case with the FL Dept. of Welfare but the investigation was called off by the parents after the son threw a tantrum and then offered them the life estate. They do not understand that their son has taken their asset and they are afraid to alienate him because they feel they will have to depend on him for financial support, transportation, etc., in the future. They do not fully grasp that they could be self-sufficient if they could draw on their asset. Their other children do not live nearby.

The Florida Dept. of Welfare stated that if fraud occurred it was in Delaware and they could not pursue it. Now that all the parties live in Florida, how would a fraud charge in Delaware be prosecuted? And is there a statute of limitation?

Based on the information you have given, this is probably more of an asset or elder law issue and I will post it the forum that deals with those issues.

Thanks again.

It doesn't sound like these folks think they were defrauded since they went along with it in writing (i.e., the POA).

 

[soninlaw]

I haven't seen the POA. The parents told me that it was limited to selling the Delaware property. Until a copy of the registered deed was found via Internet they thought they owned the house in Florida.

How can I get a copy of the POA? It must have been part of the paperwork to sell the Delaware property.

 

[seniorjudge]

I haven't seen the POA. The parents told me that it was limited to selling the Delaware property. Until a copy of the registered deed was found via Internet they thought they owned the house in Florida.

How can I get a copy of the POA? It must have been part of the paperwork to sell the Delaware property.

In some states it is required (or at least customary) to record a POA that was used in executing an instrument. So look in the deed records of the county where the deed was recorded.

 

[soninlaw]

Thanks for the suggestion. I have determined that the PoA was filed with the deed and I am having a copy sent to me.

 

[soninlaw]

I apologize for continuing this thread in this forum since it seems more and more that I now need advice about the larger topic of elder affairs. Let me know if I should start another thread in that forum.

I got a copy of the PoA. It is a Durable Power of Attorney executed under the provisions of Chapter 49, Title 12 of the Delaware Code, known as the Uniform Durable Power of Attorney Act. It covers EVERYTHING!!! (including removal from medical care against medical advice, possession of real and personal property, receipt of pension and Social Security benefits, etc.)

Although it is my understanding that a power of attorney can only be used to do things that the grantors want done, it seems very unlikely that the actions taken by the son in this case could be shown to be detrimental to the parents even though they did not know that the title to their new home is held by the son and his wife.

Can a Durable Power of Attorney be rescinded or limited? I expect an attorney will be needed to accomplish that but I am wondering if it is time to consult one just to determine whether these issues of parental ownership of the property and control of their finances can be clarified?

Thanks.

 

[absconder]

It seems that the parents trust the son and this son-in-law is afraid hes missing out on something. Go out and earn your own damn money.

 

[veronicalouise]

But alot times, trust is misplaced, and one only finds out after the fact. As in losing your home to a greedy son, who wants to make sure he gets his, before his parents die. Sometimes in laws care more, just for the person. There are two ways to look at this.

 

[soninlaw]

Thank you veronicalouise. Your interpretation is absolutely correct.