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Old 06-28-2016, 03:56 PM
 
Location: Cayucos, CA
215 posts, read 913,126 times
Reputation: 124

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I am the POA for health & finance. Mom with dementia is in memory care. Her home is paid off and there are 5 children as beneficiaries. My mother is financially sound with income and stock.

Questions: Who is responsible for repairs to mom's home? Does the estate pay for it or is it the responsibilities of the children? Two of my siblings want to spend $50,000 of the estate money for repairs to bring the house up to par to rent it out.
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Old 06-28-2016, 04:32 PM
 
Location: Salem, OR
14,571 posts, read 35,068,972 times
Reputation: 14126
Quote:
Originally Posted by aguamarina4u View Post
I am the POA for health & finance. Mom with dementia is in memory care. Her home is paid off and there are 5 children as beneficiaries. My mother is financially sound with income and stock.

Questions: Who is responsible for repairs to mom's home? Does the estate pay for it or is it the responsibilities of the children? Two of my siblings want to spend $50,000 of the estate money for repairs to bring the house up to par to rent it out.

You need to talk to an estate attorney. The POA's that you have will cease upon the death of your mother. I assume that you have a durable POA?
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Old 06-28-2016, 04:34 PM
 
Location: Dallas, TX and Las Vegas, NV
6,572 posts, read 5,408,714 times
Reputation: 14516
Estate pays since the rent will be estate income
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Old 06-28-2016, 04:41 PM
 
4,787 posts, read 10,048,082 times
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x2 on what WorldKlas said

You are the POA for finance- thus you get to make the financial decisions for the property. As POA the money for repairs comes out of the estate.

However, any rent collected is part of the estate. Your siblings cannot get the rent money while your mom is alive. After she passes, the rent is still part of the estate until the estate is settled.
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Old 06-28-2016, 05:29 PM
 
Location: Cayucos, CA
215 posts, read 913,126 times
Reputation: 124
Just what I was thinking, thank you!
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Old 06-28-2016, 05:39 PM
 
16,096 posts, read 21,340,435 times
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Quote:
Originally Posted by aguamarina4u View Post
I am the POA for health & finance. Mom with dementia is in memory care. Her home is paid off and there are 5 children as beneficiaries. My mother is financially sound with income and stock.

Questions: Who is responsible for repairs to mom's home? Does the estate pay for it or is it the responsibilities of the children? Two of my siblings want to spend $50,000 of the estate money for repairs to bring the house up to par to rent it out.
I would not spend estate money on anything you couldn't justify, as you'll be personally accountable.
If the house needs maintenance that is a valid reason.
But I get the sense they're wanting to update or remodel.
It truly disgusts me how some folks see dollar signs.....Sounds like you are going to be in a tough situation.
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Old 06-28-2016, 08:23 PM
 
Location: MID ATLANTIC
8,154 posts, read 20,046,386 times
Reputation: 9391
There was a huge clue in the original post and that was "bring the home up to par.". Is it up to code as a rental property? Does it really need 50K to be habitable? And, how did they come up with the number? Are they getting "a really good deal" with their bar bud? (Sorry, pretty cynical here)
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Old 06-28-2016, 09:37 PM
 
Location: Cayucos, CA
215 posts, read 913,126 times
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Quote:
Originally Posted by SmartMoney View Post
There was a huge clue in the original post and that was "bring the home up to par.". Is it up to code as a rental property? Does it really need 50K to be habitable? And, how did they come up with the number? Are they getting "a really good deal" with their bar bud? (Sorry, pretty cynical here)
It's a 2,500 sq ft two story house which has not been maintained throughout the years. It has mold issues in two of original bedrooms, has shower pans leaks, carpets, drapes, flooring, painting inside and out, oven, stove, repairs in 3 bathrooms, needs tenting for termites, new garage door to name the few etc.

Meeting with Property management company and real estate agent late/July and will have a general contractor give us an estimate of how much we need to repair in order to rent. Phew....
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Old 06-28-2016, 09:43 PM
 
7,458 posts, read 9,232,861 times
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Quote:
Originally Posted by aguamarina4u View Post
Questions: Who is responsible for repairs to mom's home?
Your mother is. But since you hold Power of Attorney, you get to act on behalf of your mother--hopefully after consulting with your siblings on the matter...but the call is yours if you hold POA.

But does it really need $50K worth of repairs? That sounds a bit much. You need to spend your mother's money wisely and not go overboard. You will not see a return on many "upgrades" that you may be considering. What do you think your mother would have done?

I also hold POA under similar circumstances. One empowered under a POA should act conservatively in financial matters.


EDIT: I wrote this before I saw your post #8.
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Old 06-28-2016, 09:49 PM
 
Location: Cayucos, CA
215 posts, read 913,126 times
Reputation: 124
Quote:
Originally Posted by jackmichigan View Post
Your mother is. But since you hold Power of Attorney, you get to act on behalf of your mother--hopefully after consulting with your siblings on the matter...but the call is yours if you hold POA.

But does it really need $50K worth of repairs? That sounds a bit much. You need to spend your mother's money wisely and not go overboard. You will not see a return on many "upgrades" that you may be considering. What do you think your mother would have done?

I also hold POA under similar circumstances. One empowered under a POA should act conservatively in financial matters.


EDIT: I wrote this before I saw your post #8.

Yes you are correct. I am very frugal with mom's money. This was an estimate for another sibling but the numbers will pan out and then a family decision thankfully. 3 out of 5 our very conservative including myself.
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