Legal Question in Real Estate Law in Maryland

power of attorney and real estate

Husband's sister has had power of attorney over his Mom for past 10 years. Last year after a surgery his sister moved in to take care of her and shortly after his mother decided she wanted to have her stay and take care of her. She would only stay on a permanent basis if she owned her house. His mother is 83. Without discussing price with 4 siblings she closed on his mother's house for $200,000 less that fair market value. The two of them decided to limited what his mother received to cost basis plus $250,000 inorder for mother not to pay taxes on sale. siblings do not feel that mother had mental capacity to undertake this important of a decision. is this legal? she is also exector of will.


Asked on 2/14/07, 1:43 pm

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Re: power of attorney and real estate

Unfortunately, the power of attorney, if general in nature, and not executed under inappropriate circumstances, gives your sister-in-law authority to transact any business on behalf of your mother, including transfer of the real estate. Your mother, if still mentally competent, could have revoked the power, but apparently chose not to do so. Your mother's rationale may have been that since the sister is going to be her caregiver, this is her way of compensating her for those circumstances.

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Answered on 2/23/07, 4:34 pm


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