Parent with terminal illness, wondering whether to sell the family home before death

troubleinparadise

The one time that the Attorney might encounter a problem is selling the property to themselves - that has to go through the OPG to clarify that they are selling at the market rate and not benefiting from their position.

That would also apply to selling to anyone that might think that they could buy the property a little cheaper due to a familial or friendly connection.

It always has to be a sale that is in the best interest of the Donor.

Primrose

I found myself in a similar stressful position and sold 10 months of my parents both being admitted into care homes. Their empty house was 100 miles from me and I was their sole Attorney and Executor.
One winter of trying to sort out garden, worry about frozen pipes and cope with a break in whilst I was also working was enough. If a death is expected soon you will have more than enough to cope with so spreading the administrative load may ease the strain on you.
Obviously if you are planning to sell the house to a family member get several valuations to prove nobody is buying at a beneficial price as yiunalways have to act in the donor’s best interest.

Yorkshireman99

Primrose wrote: »

I found myself in a similar stressful position and sold 10 months of my parents both being admitted into care homes. Their empty house was 100 miles from me and I was their sole Attorney and Executor.
One winter of trying to sort out garden, worry about frozen pipes and cope with a break in whilst I was also working was enough. If a death is expected soon you will have more than enough to cope with so spreading the administrative load may ease the strain on you.
Obviously if you are planning to sell the house to a family member get several valuations to prove nobody is buying at a beneficial price as yiunalways have to act in the donor’s best interest.

In such a situation you must get a paid for professional valuation by a RICS or similar. Estate agents valuation are not sufficent.

Keep_pedalling

Malcnascar wrote: »

I think sell it. Who knows what impact the rise in interest rates will have on property prices in coming months. Insurance terms, ongoing maintenance etc etc. Do you know who the beneficiaries of her will are and if you do will a sale be seen as a positive or negative?

Attorneies are duty bound to look after the interests of the donor alone, the interests of any future beneficiaries should not come into it.

Yorkshireman99

badmemory wrote: »

I had POA & sold as soon as my mother no longer remembered to ask about the house. It was such a relief too. No more having to keep checking up on it weekly to fulfil the ins terms & keeping it clean, gardening & trying to make it look lived in & this is on top of the strain of visiting & at that time I was still working. It was all really stressful.

The problem is that the attorney must only consider the interests of the donor. Whilst it my be difficult they are not allowed to put their own personal feeelings above this. This is just one of the reasons to think very carefully before taking the job on.

badmemory

Yorkshireman99 wrote: »

The problem is that the attorney must only consider the interests of the donor. Whilst it my be difficult they are not allowed to put their own personal feeelings above this. This is just one of the reasons to think very carefully before taking the job on.

We also made the decision to sell because it was necessary, she had enough savings to finance the home for about 3 years & they thought she would live 10. It was just a matter of timing. Rent would not have been enough to close the gap either. If I had my personal choice I would have liked to live there, but that certainly would not have been in her interests.

troubleinparadise

Yorkshireman99 wrote: »

The problem is that the attorney must only consider the interests of the donor. Whilst it my be difficult they are not allowed to put their own personal feeelings above this. This is just one of the reasons to think very carefully before taking the job on.

Many people act as attorney for a declining parent, which they usually agree to without ever imagining quite what they might have to undertake in the future as unexpected or unimagined events occur.

But I’d suggest it is preferable to having an unknown professional acting as deputy, when you’d not even have any input in what steps are taken, such as the choice of a care home, or the disposal of personal belongings, or being informed of decisions taken. Being an attorney can be very demanding, but it is a job usually done out of love for the donor, and a way of caring for that person as they lose the ability to look after themselves.

Yorkshireman99

I agree. What I was trying to say was it was that is not a task to be undertaken lightly because it can be very difficult for someone emotionally involved to act dispassionately and according to the law. Hence my suggestion that anyone in such a position really must take paid for professional advice as to what they can do within the legal limits. Much of what has been suggested, not by you, has been ill informed though quite sincere.

nom_de_plume

Malcnascar wrote: »

I think sell it. .......Do you know who the beneficiaries of her will are and if you do will a sale be seen as a positive or negative?

Keep_pedalling wrote: »

Attorneies are duty bound to look after the interests of the donor alone, the interests of any future beneficiaries should not come into it.

Yorkshireman99 wrote: »

The problem is that the attorney must only consider the interests of the donor. Whilst it my be difficult they are not allowed to put their own personal feeelings above this. This is just one of the reasons to think very carefully before taking the job on.

Just to throw a curve ball into this.

I had POA for a relative and was a residual beneficiary of their will of which I knew the contents. Had I sold their property when they went into care the intended beneficiary of the property would have significantly lost out whilst I would have gained hugely as the sale proceeds would have gone into the residual pot.

As usual there is no black or white solution to the OP's original question.

Yorkshireman99

This illustrates one of the weaknesses of LPOA's. The unscrupulous can gain an advantage with, in many cases, little chance of detection. It also shows that the woding of wills needs to allow for such events. Giving a percentage of the whole estate is worth considering.