How do I sell my parent's house when they are moving to assisted living in Pennsylvania?

If your parent can understand the sale, they should be involved and can sign. If they cannot, the house can be sold only by someone with legal authority. That is usually an agent under a valid power of attorney that covers real estate, or a court-appointed guardian. Check the document, and ask the title company to review it early.

Pennsylvania's Seller Disclosure Law exempts transfers by a fiduciary administering a guardianship, conservatorship or trust. A power of attorney agent is not listed, so ask an attorney whether disclosure applies.

The Pennsylvania Department of Human Services says any asset transferred, sold or given away within the past 60 months must be reviewed when someone applies for Medicaid long-term care. If fair market value was not received, a penalty period of ineligibility can follow, calculated by dividing the uncompensated value by the average daily private pay rate for long-term care.

So selling a parent's house to a relative at a discount, or giving it away, can cost more than it saves. Document an arm's-length sale.

Keep a clear paper trail. Save the appraisal or agent opinion, the listing history, the offers and the settlement statement. If DHS ever reviews the sale, those records show it was at arm's length.

DHS states the home is excluded from countable resources if its value is at or below 752,000 dollars and the person intends to return or lives there, or if a spouse or dependent lives in it. Once the house is sold, the proceeds become cash that is counted. That can change eligibility and the timing of an application.

An elder law attorney can advise on whether to sell, when to apply and how to protect a healthy spouse. Do not make that decision from a web page.

Get a written estimate of what the house would sell for and what repairs it needs. Decide who will clear it and how. Gather the deed, tax bills, mortgage information and insurance. Keep family informed so a sale does not become a surprise later.

Taxes can also matter. The IRS home sale exclusion rules depend on how long the owner lived in and owned the home.

Take photos of the house at its best and of any problems. The record helps with pricing, with disclosure and with any later questions about whether the sale was at fair value.

If the house needs work and the family wants it done quickly, a cash sale may reduce stress and cost. Kaizen Home Buyers buys as-is, makes a cash offer within 24 hours, charges no agent commission and can close on a date that fits the move. Compare it with a listing price and confirm everything with an attorney. Call 267-329-0084.