Durable Power of Attorney Selling Property

[bhont]

My question involves a power of attorney in the state of: Pennsylvania

My mother has power of attorney for my grandmother, who has dementia and no longer capable of living on her own.

My understanding is that in Pennsylvania all POA is considered durable and continues even if the person becomes incapacitated or unable to make rational decisions (in this case).

What concerns my mother is that if she needs to get professional care for my grandmother they will seize all her assets and sell her house to cover costs of care. Since she has durable POA, is it possible for her to sell the house to herself or someone else in the family, or remove my grandmothers name from the deed? If so and my grandmother dies, are there any tax or other implications to consider? My understanding of durable POA is that the person who has POA can essentially perform any and all transactions that the actual person would otherwise be able to perform themselves. I am just not clear on the tax and other implications which may negatively impact the decision to strip her assets so that they are not taken by a nursing agency.

Quick side note: my great aunt went into nursing care and they took her house, all her cash and assets and her social security and other monthly income every month until she died, giving her something like $50 a month for personal expenses. My family is trying to avoid this happening with my grandmother.

Thanks

[flyingron]

What makes you think grandma's assets shouldn't be used to cover her care?
A POA who sells property to herself or others at other than arms length (market price) transaction is certainly going to cause a lot of scrutiny.
Such a transfer may be invalidated and it may screw her medicaid eligibility.
Your mother should consult an elder law attorney before doing something bad.