As a POA, can you purchase the family property and take the sale of the property and put it in the grantor account to take care of him/her?

I think that Cali would tell you to be certain that you are paying FULL MARKET VALUE if such a thing is done, and if you are doing this. I myself would also caution to pass this past an Elder Law Attorney. It is a little scary to me. But I can see why it would be good.

Don't forget that you're eliminating the benefit of full step-up value if you purchase the home while the remaining owner of record is still living.

If the POA forms give you the authority to handle these kinds of transactions, then you can. You need to have the house appraised to make it a fair & legitimate business deal. An appraisal by a licensed appraiser, not the best “price” from a real estate agent. The money MUST be used for her care & you MUST have proof documenting where you spend the money. If you buy it for less than fair market value, you’ve actually cheated her out of money (POA has a legal obligation to act in the BEST interest of the grantor) AND you’ve set yourself up for Medicaid problems later.

If you’re thinking you can buy the property “cheaply” simply because it’s left to you in the will, that’s a huge NO.

In my state, under the financial power of attorney laws, an agent cannot engage in self-dealing unless the POA document specifically permits it. The agent buying the property might be considered self-dealing. As others have said, selling the house to someone else at fair market value probably would be okay.

So just how do you know elder “not eligible to receive Medicaid”?

Was a Medicaid application started and there’s asset transfers or other money moves in their past that would be red flags for Medicaid? So Medicaid wasn’t filed for?
Just what are the issues for their not being eligible for LTC Medicaid?

it’s- to me - an odd phrase to post, especially if your now trying to find out how to use your dpoa to sell elders property to yourself.
Just sayin’.....

You don't mention any price range, or where you live.  If the house generates enough sale funds to trigger capital gains tax, you need to determine this before even considering a sale.   

Liquidating an asset to generate funds isn't something to be done lightly.     I have some reservations that, as someone noted, this could be considered to be something akin to self dealing.

If you hire an investment manager or someone to manage the funds after sale, you're incurring costs that wouldn't otherwise exist.

You really need to speak with an attorney experienced in real estate, Medicaid and elder law, or a firm with specialties in each area.

Do you have the ability to transact real estate in the POA? It has to be specifically granted in the POA agreement. In many counties, a POA agreement that can transact real estate has to be recorded with the county.

My family member lives in the state of Virginia.

You should actually run this by an attorney. You are asking if moms POA can buy her house and that could be a conflict of interest and a breach of fiduciary duties even though though you say the money will go to mom. It’s not as much about the money as it is About you/POA doing something that you personally benefit from. You are essentially asking if the POA can sell themselves moms house.....

Yes, as long as it is fair market value and the proceeds are used solely for the person who is the owner of the property. When the person needs to go into AL, it would be self pay from the proceeds, until the money runs out, then Medicaid can be applied for.