Legal Question in Wills and Trusts in Illinois
Power of Attorney and Property Held in Trust
My sibling has been given power of attorney for my mother. We are talking about selling her house, mainly because the proceeds may be needed for her medical care. Does this become the property of my sibling to manage for my mother although I was named in the trust? Can the proceeds be kept in the trust without being taxed? Do my sibling and I officially obtain the proceeds ourselves although our mother is still alive?
1 Answer from Attorneys
Re: Power of Attorney and Property Held in Trust
A person acting under a power of attorney is doing so on behalf of another person. This means that the title of the property remains with the person who granted the power of attorney to the agent.
The answer to your question regarding the trust depends on the type of trust that owns the house. Generally, when an asset that is owned by a trust is sold, the proceeds from the sale remain in trust, to be administered (invested and distributed) by the trustee.
Again, depending on the wording of the trust, the assets may be distributed for your mother's (primary beneficiary) behalf, or may be available for distribution to other beneficiaries as well.
You should have an attorney who practices in the area of estate planning review the trust and advise you of yours and your mother's rights.
This answer is based solely on the limited information contained in the hyptothetical question posted. It should not be considered legal advice. Only an attorney who has reviewed the trust and the power of attorney can advise you.
Good luck to you.