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Power of Attorney
Are we responsible for my in-laws' debts if they take out loans?

Are we responsible for my in-laws' debts if they take out loans?

Q: Can a dementia patient revoke power of attorney?

A dementia patient can revoke a power of attorney only if they are legally competent to do so. If their cognitive abilities are significantly impaired, they may not be able to understand the consequences of revocation. In such cases, a court may need to determine the patient's capacity to make such decisions.

Full question:

My husband is power of attorney from state of MI for his parents his dad has Alzheimer's and his mother had a massive stroke, and has some brain damage and not able to make financial decisions. My husband and our two daughters are the executors of the estate if and when they die but until then if they run up medical bills and take a lean out on there home that is in MI to live here in TN when that money gone all they can borrow on home in MI and then if they die are my family responsible for the debts and leans they borrow against . Can they come or sue us I don't want to lose my home over this to keep them up in a place they can't afford. What do we do? We live in TN and have my in-laws in a asst living here in TN but there home is in Michigan ?

Category: Power of Attorney
Date: 04/07/2025
State: Tennessee

Answer:

The situation depends on the type of power of attorney your in-laws established. If they created a regular power of attorney, it may not be valid anymore if they are incapacitated. A durable power of attorney remains effective even if the principal becomes unable to manage their affairs. If the power of attorney is no longer valid, family members can petition the probate court to become conservators for the incapacitated parents. A conservatorship allows a person to manage the financial and personal affairs of someone who is unable to do so due to mental or physical incapacity.

Executors and administrators handle the estates of deceased individuals and are not personally liable for the debts of the estate. If the estate cannot pay its debts, creditors may place liens on the estate's assets, but they cannot pursue the personal assets of the executors. If your in-laws incur debts while alive, and if those debts lead to liens against their property, it will be the estate's responsibility to settle those debts after their passing.

If you're concerned about the financial burden of their care, consider exploring Medicaid assistance. The Medicaid qualification process can be complex, especially with property involved, so consulting with an Elder Law or Medicaid attorney is advisable. Medicaid provides medical assistance for low-income individuals and covers various healthcare services.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can someone with dementia revoke a power of attorney?

A person with dementia may not have the legal capacity to revoke a power of attorney if their condition impairs their ability to understand the implications of such a decision. Generally, a power of attorney can only be revoked by someone who is mentally competent. If a person with dementia wishes to revoke a power of attorney, it may require a legal evaluation to determine their capacity to make that decision.

What legal rights does a person with dementia have?

Individuals with dementia retain certain legal rights, including the right to make decisions about their personal and financial affairs as long as they are deemed competent. However, as their condition progresses, they may lose some of these rights. It's important for family members to consult with legal professionals to understand how to protect the rights of a loved one with dementia.

Can a dementia patient revoke power of attorney?

Who is responsible for a parent with dementia?

Typically, family members, particularly adult children, may take on the responsibility of caring for a parent with dementia. This can include making healthcare and financial decisions. If the parent is unable to manage their affairs, it may be necessary to establish a power of attorney or seek guardianship or conservatorship through the court.