If a house is in trust who signs alease to rent it, thePower of Attorney or the Trustee?
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If a house is in trust who signs alease to rent it, thePower of Attorney or the Trustee?
My husband is trustee of the irrevocable trust in which his Mom’s house was put. His sister is Power of Attorney of Mom. Mom just went into a nursing home and sister went to a real estate agent and signed the paperwork to rent the house. As POA is she able to do this? If not, has she committed fraud?
Asked on October 21, 2010 under Estate Planning, Massachusetts
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
So the house is in the name of the trust and not you Mother in Law, correct? Sometimes the powers that are afforded the POA and the Trustee overlap. In this instance I do not think that your sister in law is committing fraud per se. Let's give her the benefit of the doubt that she does not realize that your husband now has priority in the handling of the trust property. The trustee - your husband - can "release" the right to handle this matter to the POA, your sister in law, if they agree. But I believe he would have priority here to act. I would speak with your attorney in this matter. This could be a family fight that can be avoided with a little diplomacy. Good luck.
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