Selling Mom or Dad’s House with a Power of Attorney

Your parent has moved to assisted living, a nursing home, or in with family — and their Fort Wayne house sits empty while the bills keep coming. If you hold power of attorney, you’re probably asking: can I sell the house for them?

In Indiana, the answer is yes — if the POA document authorizes it. Here’s how to check, what the process looks like, and the Medicaid trap to avoid.

Step 1: Read the POA Document — the Real-Estate Clause Is Everything

Not all powers of attorney are equal. To sell real estate in Indiana, your POA generally needs to:

Expressly authorize real estate transactions — look for language about the power to “sell, convey, or transfer real property.” A general “manage finances” POA may not be enough for a title company.
Be durable — meaning it stays valid if your parent becomes incapacitated. Most estate-planning POAs are durable; the document will say so.
Be properly executed — signed and notarized per Indiana law.

The title company will scrutinize the document before closing — they’re insuring the transfer. Send it to them (or to us) early so any problem surfaces in week one, not at the closing table.

Step 2: Understand Whose Money It Is

Acting under POA, you’re a fiduciary: the sale proceeds belong to your parent, go into their account, and must be used for their benefit. Selling below fair value to a family member or pocketing proceeds invites legal trouble from siblings and the state. Keep records of everything — the offer, the closing statement, where the money went.

Step 3: If Your Parent Can No Longer Sign — and There’s No POA

If your parent is already incapacitated and never signed a POA, you can’t create one now — POAs require capacity to sign. The path becomes guardianship through the county court: slower (months) and costlier, but it works. An elder-law attorney is essential here. If the parent has passed away, the process is probate, not POA.

The Medicaid Question Everyone Should Ask First

If your parent is on Medicaid — or might need it within five years — talk to an elder-law attorney before selling:

The house is usually an exempt asset while they own it. Selling converts it to cash, which is countable — a sale can push your parent over Medicaid’s asset limit and pause benefits until the money is spent down on their care.
The 5-year lookback: gifting the house (or selling it cheap to family) within 5 years of applying for Medicaid triggers a penalty period. Sell at fair market value, keep documentation.
Estate recovery: Indiana can claim reimbursement from a deceased recipient’s estate — sometimes selling and using proceeds for care is the plan; sometimes keeping the house is smarter. Get advice for your specific case.

None of this means “don’t sell” — it means sequence matters. A one-hour elder-law consult before the sale can save tens of thousands.

Why POA Sales Often Go the Cash Route

These houses are usually 30-50 years lived-in: original systems, full of belongings, deferred maintenance. Listing means clearing it out, fixing it up, and managing showings — while you’re also managing your parent’s care. A direct sale means:

As-is purchase — take the keepsakes, leave everything else
No repairs, no showings, no months of carrying costs draining your parent’s savings
Closing on your family’s timeline — 7-14 days or whenever you’re ready
A documented fair-value transaction — clean for Medicaid and for the family record

We’ve Helped Fort Wayne Families Through This

Indiana Home Solutions works with POA sellers, elder-law attorneys, and title companies on these sales regularly. We’ll review your POA situation honestly and tell you if anything’s missing before you spend a dime.

Call (260) 203-0686 or request a free offer.

Selling Your Parents’ House with Power of Attorney in Indiana