My brother is the executor of my father's will. My father has dementia and was just put into assist living home. He also has guardianship of our father. I heard through my sister that he wants to sell my father's house to one of his children for less than what it's worth. What he will sell it for will be only one year in the assisted living home. Can he have the power to sell house now or does he have to wait until the will?
If he sells under the POA authority, he might be engaging in "self dealing."
Pay close attention to the advice regarding (a) selling for less than market value and (b) Medicaid liens if your father ever needs Medicaid assistance.
Brother's idea is not a good idea.
I ask cause FMV can vary..... there’s the tax assessor value based on comps of recent sales of similarly sized property within an area;
-appraised value done by registered’ licensed appraiser, which is based on detailed onsite study& usually considered a legal document;
-Realtors listing price, which often has price under more than ideal circumstances as Realtor is expecting bidding & reductions
& then what you’ve heard others houses have sold for
What are you basing value on? Often elders are living in homes with decades of delayed maintenance; homes with pre1990’s electrical, plumbing; vintage kitchen & baths. They are not even close to what the recently sold comps are. If house in area with lots of Reno’s & flips, value will be way way off. Property could be worth lots, lots less plus remember that selling to family means no 6% Realtor commission. My point is the price bro is selling for could be fair & accurate for Condition.
But If he should need to apply fir Medicaid later, he will need to show why below FMV. Appraisers report does this.
Brother as guardian, has gone through a whole legal process to be this. Was there a reason why you did not yourself ask to be named guardian?
As your father's guardian, Brother has a legal responsibility to act in father's best interest. Selling the house at less than market value does not sound like acting in his best interests. Of course, there may be some mitigating circumstances. Is "what it's worth" really what it would sell for, or is it in disrepair and would cost a lot to bring up to code, remodel, whatever is needed? Are back taxes owed? Is selling it quickly for any amount better than letting it go to auction? How did you or sister determine what it is worth?
As a legal guardian your Brother has to make periodic financial reports to the courts. I think selling an asset at less than it is worth would raise all kinds of red flags.
He does have authority to make all financial decision for your father. The will has nothing to do with it.
If you are worried about his behavior, could you have a discussion with all siblings present, so he could explain what is going on to you? He is under no legal obligation to explain anything to you, but perhaps in the interest of family harmony he'd be willing to set your minds at ease.