YOU HAVE QUESTIONS, WE HAVE ANSWERS!
VIVA ESCROW Q & A SEGMENT
(Real questions sent to us – verbatim!)
QUESTION:
If I have a power of attorney from my father from a few years ago who is now in hospice care, can I use it to sell his home? What if he dies before the transaction can be finished?
ANSWER:
I am happy that you were proactive in getting a power of attorney when your father’s health was in question. Advance planning is always recommended. In order to use the Power of Attorney, here are some things to think about:
- First, please provide a copy of the power of attorney to the Escrow Officer and the Title Company for their review to determine if it, and the date of it is acceptable and will allow you to handle the sale of his home.
- You may need to obtain two physicians’ letters stating the mental and physical condition of your father. If they can refer back to your father’s condition when the power of attorney was signed, so much the better.
- If your father passes away during the sale transaction, the power of attorney will no longer be able to be used for the sale.
- If your father co-owned the property with someone else as “Joint Tenants”, which has “rights of survivorship”, then if he passes away, the other owner would automatically get the property. The power of attorney will not be necessary. What will be needed is an Affidavit of Death of Joint Tenant with Death Certificate attached.
- If the ownership of the property when your father passed away was only under his name and there is no co-owner, then I’m afraid you won’t like the answer – ownership transfers to his Estate and Court Probate will be required.
EDUCATIONAL MOMENT:
Most of these concerns would not be necessary if your father had made financial arrangements and put his property and other assets into a Revocable Trust. With his health failing, he could have had his Trust Attorney prepare an “amendment” or an “assignment” of his Trusteeship to the Successor Trustee. The Successor Trustee would then take over the management of his assets. No power of attorney would be needed to sell the property and his death would not affect the final closing of the sale.
Another reason why setting up a Trust is so important.
Always obtain legal and financial counsel when contemplating the sale of assets. Real Estate and Escrow Professionals cannot give legal advice.
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~ Video of the Month ~
Why Japanese are not fat (and Americans are!)
(Disclosure: 15 minutes to make you think what not to eat)
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~ Quote of the Month ~
“Don’t get worked up about things you can’t control, particularly what goes on in the mind of others.”
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An Attorney Seller had his own views on how to handle his sale transaction, thus our:
Attorney Series – Part 3
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You Have Questions? We Have Answers!
Juliana Tu, CSEO, CEO, CBSS, CEI, SASIP
“Escrow is my FOREMOST language!”
Advance Disclosure:
The opinions expressed in this blog are solely the author’s.
Your comments and viewpoints are always welcome.
Info @ VivaEscrow.com