Helping a parent · Washington State
Can You Sell a Parent's House If They Have Dementia?
The short answer
Usually, yes. Who signs depends on where your parent is in the illness and what papers they signed earlier. If your parent can still understand the sale, they can sign themselves. If not, an agent under a durable power of attorney can usually sell it. If the house is in a living trust, the successor trustee may be able to act. With none of these, a court has to appoint a conservator, who needs the court's permission to sell the home. If your parent is married, the spouse usually has to sign too. Before listing, check how the sale affects Medicaid and taxes.
Who can sign, in order
- Your parent, if they can still understand the sale.
- An agent under a durable power of attorney, or a successor trustee if the house is in a living trust.
- A court-appointed conservator, with the court's permission to sell.
If your parent is married, the spouse usually signs too (see below).
1. Can your parent still sign?
A dementia diagnosis does not by itself take away the right to sell. Capacity is judged at the moment of signing, for that decision: does your parent understand that they are selling the house, roughly what it is worth, and what happens to the money? Many people in the early stages can, and if they can, the simplest path is for them to sign, ideally with you helping.
If there is real doubt, settle it before listing, not at closing. An elder law attorney can meet your parent, and a letter from their doctor about their ability to make this decision is often what a title company asks for. A deed signed by someone who did not understand it can be challenged later.
2. Is there a durable power of attorney?
In Washington, a power of attorney stops working when the person becomes incapacitated unless it says it survives incapacity. Find the document and look for wording such as "This power of attorney shall not be affected by disability of the principal." Without it, the document is no help once your parent cannot sign.
A durable power of attorney that gives the agent general authority over real property lets the agent sell the house, unless the document limits that. Giving the house away, adding someone to the title, or changing who inherits it are different: the agent can do those only if the document expressly says so.
The title company will review the document. Under Washington law it must accept a notarized power of attorney, or ask for the agent's certification, within seven business days. If the document names two agents, both usually have to sign unless it says either one can act alone.
What the agent owes your parent
An agent must act in good faith and in your parent's best interest, follow their known wishes, avoid conflicts of interest, and keep records of every dollar. Selling at a fair price, putting the proceeds in your parent's own account, and documenting the value with an appraisal protect both your parent and you.
Buying the house yourself, or selling it to another family member, is a conflict of interest. It is not automatically forbidden, but it is the sale most likely to be questioned by siblings, by DSHS or by a court. Get an independent appraisal and legal advice first.
If the house is in a living trust
If your parent deeded the house into a revocable living trust, the trust document, not a power of attorney, says who manages it when your parent can no longer do so. Most name a successor trustee and say how incapacity is shown, often by one or two doctors' letters. Once in charge, the successor trustee can sell the house and prove their authority to the title company with a short certification of trust.
Check the recorded deed first. If the house was never transferred into the trust, the trust does not control it.
3. If there is no durable power of attorney: conservatorship
When a parent can no longer sign and no one has authority, a family member can ask the superior court to appoint a conservator to manage their property. (A guardian makes personal and care decisions; a conservator handles money and property. One person can be both.) Even then, the conservator needs the court's specific permission to sell your parent's home, with notice to the family.
This takes months and costs money in court filings and attorney fees, which is why a durable power of attorney signed while a parent can still sign it matters so much. If your parent can still understand and sign one today, that is usually the first call to make, to an elder law attorney.
If your parent is married
A house a married couple owns as community property cannot be sold by one spouse alone; both have to sign the deed. If the spouse at home is well, they sign for themselves, and the parent with dementia signs through their own authority: themselves, their agent, or a conservator. If both spouses are affected, both need someone with authority to sign.
A spouse at home also has protections under Medicaid that can change whether selling makes sense at all.
Before you list: Medicaid and taxes
Medicaid. While your parent intends to return home, Washington's Apple Health usually treats the house as exempt, so it does not have to be sold to qualify. Once it is sold, the money counts as your parent's savings and is generally spent on care before Medicaid pays. That can be the right plan; it should be a deliberate one.
Taxes. A parent who lived in the home at least two of the last five years can usually exclude up to $250,000 of gain from federal income tax ($500,000 for a married couple). Time spent living in a licensed care facility counts as living in the home, as long as your parent lived there at least one of those five years and can no longer care for themself. Keeping the house until death instead gives the heirs a new tax basis at its value then, which can wipe out the gain entirely. Which is better depends on the numbers; ask a CPA before you list.
Checklist
- Find any power of attorney, trust and will, and the recorded deed. Note whether the power of attorney says it survives incapacity.
- If your parent may still be able to sign, talk to their doctor and an elder law attorney now, before abilities change.
- If your parent is married, find out whether the house is community property and who will sign for each spouse.
- Get a documented value: an appraisal protects the agent and answers questions from family, DSHS or the court.
- Ask a CPA to compare selling now with keeping the house, and ask how the sale affects Medicaid before you list.
- Keep the proceeds in your parent's own account and keep a record of every payment from it.
Related guides
General information, not legal or tax advice. An elder law attorney can say how these rules apply to your parent, and a CPA can run the tax numbers. Real Property Planning does not refer clients to attorneys.
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