What is the name of your state? Florida
I posted this in the Real Estate forum. Based on replies there the problem seems more appropriate here. Your input will be appreciated.
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.
Belize Breeze replied: 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 replied: I have never heard of a reverse mortgage being granted on a life estate.
My reply to them: 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 [50 yr. old] 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?
I posted this in the Real Estate forum. Based on replies there the problem seems more appropriate here. Your input will be appreciated.
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.
Belize Breeze replied: 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 replied: I have never heard of a reverse mortgage being granted on a life estate.
My reply to them: 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 [50 yr. old] 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?