Selling the Home of a Parent Who Has Alzheimer’s

selling home when your parent has Alzheimer'sWhen it comes time for a senior to move into assisted living, one of the most important items on the to-do list is to sell the person’s home. Often, the money from the sale is needed to pay for necessary care. It has to be done, but there’s a catch: only a homeowner can legally sell their home. If Alzheimer’s has already incapacitated the person, then getting this task done becomes difficult.

Basically, you cannot act if you do not have power of attorney. Hopefully, your parent was organized enough to assign this power to a family member or other trusted person while they still had the capability to make these important decisions. But all too often, this step has been postponed, and now that the parent has lost capacity to make decisions, it’s too late. The caregiver’s only option now is to apply for guardianship of their loved one through the legal system.

However, be forewarned that the process of obtaining guardianship is expensive and draining. For one thing, the court will need to award you the right to complete every step of the process. You need to have permission to sell the home, you need to get court approval of the sale price, and then you need to have permission to use the proceeds to pay for senior care. Getting these rulings made will take anywhere from a few weeks to a couple months, which seems to be a long time to wait when the money is needed now.

The first step is to find a buyer who’s interested in the house, and then get them to sign a contract. The contract must state that the sale is conditional upon court approval. You can then file this document with the court and wait for them to review it and approve the terms of the sale. Unfortunately, it’s not uncommon for buyers to decide that this extra step is too much trouble. If they can find a house they like just as much without restrictions like this, they may decide to walk away from the deal.

The process isn’t necessarily any easier even if the caregiver has power of attorney. Sometimes the title company puts up obstacles and challenges the validity of the agreement between the senior and the caregiver. They may want your parent to still sign something to approve the sale, or they may want to meet with them to confirm that they are incapacitated.

In the end, the takeaway message is that selling a parent’s home is complicated, and you should be prepared for a lengthy and challenging process. Your best course of action is to find a lawyer specializing in elder law, who will be able to guide you through the process in the most painless way possible.