{"id":6055,"date":"2024-10-17T07:14:55","date_gmt":"2024-10-17T11:14:55","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=6055"},"modified":"2024-10-18T09:10:22","modified_gmt":"2024-10-18T13:10:22","slug":"when-a-co-owner-has-dementia-whats-ahead","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/when-a-co-owner-has-dementia-whats-ahead\/","title":{"rendered":"When a Co-Owner Has Dementia: What\u2019s Ahead?"},"content":{"rendered":"\n
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Do you co-own a home? Then you could one day be asking if your deed can be signed over to someone else if either co-owner develops dementia. You might even want to transfer the deed entirely, and move to a place that will be easier on one or both of you.<\/p>\n\n\n\n

Let\u2019s take a look at the issues that crop up in such cases \u2014 which, of course, are fairly common as baby boomers grow older.<\/p>\n\n\n\n\n\n\n\n

Power of Attorney (POA) Should Be Assigned Early On<\/h2>\n\n\n\n

Someone could challenge the transfer of a deed by an owner who lacks full understanding. For this reason, do estate planning early. While each owner still has legal capacity and agrees, request guidance from a financial adviser or estate planning lawyer about setting up a POA. As owners get  older, having power of attorney in place will allow seamless decision-making, contract-signing, and deed transfers.<\/p>\n\n\n\n

The most helpful holder of a POA is one who seeks guidance and makes strategically informed decisions.  <\/em><\/strong><\/p>\n\n\n\n

You may use a springing power of attorney<\/em>. It could \u201cspring\u201d into effect when the owner is declared incapacitated<\/a>, allowing an agent to step in.<\/p>\n\n\n\n

Or you may use a durable power of attorney<\/em>. It goes into effect on its stated date, and stays in effect during the deed holder\u2019s life. (But there is a form for revoking it before death, if needed.)<\/p>\n\n\n\n

Either way, the POA document can cover one home (identified by address and legal description), or all of a person\u2019s assets. Be sure the signer initials each power being assigned.<\/p>\n\n\n\n

You can use our Forms page to find your state<\/a> and local law for POA document specifics.<\/p>\n\n\n\n

Have you considered a <\/strong><\/em>life estate deed<\/em><\/strong><\/a>, so the home can bypass probate after both co-owners\u2019 deaths? Ask a lawyer experienced in elder law to tell you if this is a viable option in your circumstances.<\/strong><\/em><\/p>\n\n\n\n

This is a good time to establish a medical power of attorney, too.<\/em><\/strong><\/p>\n\n\n\n

What Happens When Your Co-Owner Needs Assistance<\/h2>\n\n\n\n

If your co-owner\u2019s incapacity has been confirmed, respect is the keyword. The general idea is sharing in decisions as far as possible, and acting in the co-owner\u2019s best interest when it\u2019s not possible.<\/p>\n\n\n\n

From a practical standpoint, when there\u2019s no longer capacity to make legally binding contracts, it\u2019s too late for the deed holder to grant POA authority to someone else. No assets can be transferred or financed if an owner is suffering an incapacity.<\/p>\n\n\n\n

Does this mean no decisions can be made at all?<\/p>\n\n\n\n

No, but help is required, such as:<\/p>\n\n\n\n