Elder Law Answers
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Read moreCan I Transfer My Parent's Assets to Myself Using My Power of Attorney?
- December 22nd, 2014
Q
As the agent under a power of attorney for an elderly parent with progressive dementia, is it allowable to move any or all the parent's assets to a fund in my name or my siblings' names with the intent of paying for all costs associated with care until the five-year look back period for Medicaid has passed, with the remainder being protected by the move? Is this considered gifting, and prohibited under the provisions of the power of attorney, if it is consistent with all intents described in the will and revocable trust, and the agent under the power of attorney is also named trustee?
A
It sounds like what you propose is not permitted under the provisions of the power of attorney. However, if everyone is in agreement, as a practical matter it may be possible and not be challenged. What you describe is not uncommon as a Medicaid-planning device and can have some tax benefits since you can deduct some of your parents’ medical expenses on your tax return. However, depending on the property it can have some adverse tax consequences as well, especially if any of the assets are highly appreciated. It also subjects the transferred assets to your creditors and to risk if you were to get divorced or pass away while holding the funds. Given what’s at stake, I strongly recommend that you and your family consult with an elder law attorney before implementing the plan.
For more on powers of attorney, click here.
Local Elder Law Attorneys in Ashburn, VA
Meet Margaret O'Reilly
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Margaret O'Reilly
Margaret A. O'Reilly, PC
Margaret A. O’Reilly is an estate planning and elder law attorney with over thirty-five years of legal experience. Attorney O’Reilly graduated from Duke University with a degree in psychology, and received her law degree from Northeastern University School of Law in Boston, Massachusetts. For over 15 y...
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Meet John Laster
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John Laster
Law Offices of John L. Laster
John Laster is a lawyer licensed to practice in Virginia, Maryland and the District of Columbia. He limits his practice to wealth transfer planning, trusts, wills, powers of attorney, health care decision-making issues, estate administration and related tax, elder law and disability concerns. Listed in The Best Lawyers...
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Meet Ron Landsman
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Ron Landsman
Ron M. Landsman, P.A.
Ron M. Landsman has been practicing elder law since 1983, before it was known as elder law, originally with Landsman and Laster, Washington, D.C., then Landsman, Eakes and Laster, also in Arlington, VA, and since 1990 in his own practice in Montgomery County, Maryland. He has been among the most active members of the...
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