I am POA for my father, who is in assisted living. My Mother is in the same facility but in another wing since she has Dementia. Their home is empty ever since they moved to the nursing home. My nephew wants to buy the house at fair market value, but my father refuses to sign because he says wait until he dies. Obviously my father (nearly blind) is not thinking logically. As POA can I sign for my father? Does he have to have a psychological evaluation to prove he is incapable of making financial decisions?
On the one hand, your father has every right to decide how he wants his estate to be handled and when he wants to sell. Keeping the house may give him a sense of comfort that someday he will be able to "go home." And, in fact, you may want to move him home as he nears the end of his life and wishes to die in his own home...you just do not know at this point.
On the other hand, you are being responsible by wanting to sell his home now, at fair market value (especially in this market) and use the funds for his care. That is also a caring thing to do.
I think people have a misconception about POAs. They are only to be used when the family member is totally incapacitated and cannot make informed decisions about their finances and medical care. Does your dad fit this description?
I would give it a little more time and talk with your dad when he is more receptive. Point out all the advantages (no upkeep, taxes, mortgage, etc...) then back away until he comes around. It would be sad to sell without his buy-in.
As a compromise, could you ask your dad if he would be willing to "rent" to the nephew with the idea that the rental payments will go toward eventually purchasing the home? That way, he still retains ownership and the nephew can move in anytime.
good luck...so many tough decisions