Legal Question in Elder Law in Pennsylvania

Re: Transferring Home Ownership to Family Caretaker

First of all, if you in-laws are competent, then they ought to be making the decisions about the house, etc., to the extent possible. If they are not competent or suffer from diminished capacity, however, your husband�s options will depend largely on the language in the Power of Attorney (POA) document. For example, in order for an Agent to transfer real estate in Pennsylvania, the POA document must be notarized and it must contain a specific power authorizing the Agent to handle real estate transactions. Also, if the real estate is to be transferred to your husband as a gift, then the Agent must have very specific authorization in the document to give gifts over $11,000 per year.

Aside from the question of whether your husband has the authority to execute the transaction, you also should consider, among other things, the effect that the transaction will have on the Capital Gains Tax, the Federal Gift and Estate Tax and the PA and NY Estate and Inheritance Taxes, and the effect on your in-law�s eligibility for Medicaid if they require nursing care down the line.

To discuss the matter further, feel free to contact me by phone or e-mail.

Re: Transferring Home Ownership to Family Caretaker

It would be best if your husband discusses with HIS parents, their desires with respect to planning for their future, without your input.

If any property is to be transferred, to your husband, from his parents, it should Not be done via his POA, but by the independant actions of his parents. This is especially the case, where either of your husbands' parents have other children or family members.

Good luck,

Phroska L. McAlister,ESQ