How Do You Sell A Parent's Home After They Move To Assisted Living?
Start with who has the legal authority to sign. If your parent can still make their own decisions, they sign. If not, you'll need a valid Georgia power of attorney or, without one, a conservator appointed by the probate court. From there, the big decisions are whether to sell now or hold, how the sale affects taxes and any Medicaid plans, and how to get the house ready while your parent settles in.
Mom is safe in her new place. Now the house has to sell, and you're the one holding the paperwork. Here's how to work through it, one step at a time.
Who Has The Legal Authority To Sell The House?
This is the first question to answer, because it decides everything else.
If your parent can still make decisions, they can sign the listing agreement and closing documents themselves. You can help with everything else. If they're in a care community in Marietta or Roswell, ask the closing attorney early how they handle signing for a parent who can't come to the office.
If you hold a power of attorney, you may be able to sign for them. A few things to know about Georgia powers of attorney:
- They stay in effect after incapacity. Under Georgia's Power of Attorney Act, a power of attorney is durable unless it says it ends when the person becomes incapacitated.
- The document has to cover real estate. The authority to sell property has to be granted in the document. Some closing attorneys prefer a power of attorney that specifically covers the property and the sale.
- It has to be signed correctly. Georgia requires the parent's signature, a witness who isn't the agent, and an attesting officer, usually a notary.
- The closing attorney reviews it first. Get it to the closing attorney well before closing, ideally a week or more ahead. It's typically recorded with the deed, and the title company may ask you to confirm your parent is living and hasn't revoked it.
- It ends at death. If your parent passes before closing, the power of attorney no longer works, and the sale moves through their estate.
If there's no power of attorney and your parent can't make decisions, a Georgia probate court can appoint a conservator to manage their finances and property. A conservator can sell the house, but only with court approval. It takes longer and costs more, so if your parent can still sign a power of attorney, talk to an elder law attorney now.
Should You Sell Now Or Hold The House?
There's no single right answer. A few numbers usually drive the decision.
The cost of care. Assisted living typically runs several thousand dollars a month in Georgia. For many families, the house is the biggest asset available to pay for it.
The cost of an empty house. The mortgage (if there is one), taxes, insurance, utilities, and upkeep keep coming. Many homeowners policies change once a house sits empty for 30 to 60 days, so call the insurance agent once your parent moves out.
Taxes. Normally, a seller needs to have lived in the home for two of the last five years to exclude up to $250,000 of gain from capital gains tax. The IRS makes an exception for people who can no longer care for themselves: if your parent lived there for at least 12 months of the last five years, time in a licensed care facility counts toward the two-year requirement. Here's more on capital gains tax when you sell your home.
There's another side to the tax question. If the house is inherited instead of sold, heirs generally receive a "stepped-up" tax basis, equal to the home's value at the date of death. Depending on how much the house has gained in value, holding it can sometimes mean less tax, or selling now can make more sense. A CPA can run both scenarios.
Medicaid. If Medicaid might help pay for care, slow down before you list. In Georgia, a home can be exempt from Medicaid's asset limits in some situations, such as when a spouse still lives there or within a home equity limit ($752,000 in 2026, according to MedicaidPlanningAssistance.org). Once the house is sold, the cash from the sale can count against those limits. Georgia also looks back 60 months for gifts or below-value sales, so don't sell the house to a family member at a discount without advice. An elder law attorney can tell you how a sale affects your parent's eligibility.
How Do You Get The House Ready Without Taking On Too Much?
This is often the hardest part emotionally. It's decades of belongings, and it's happening while your parent adjusts to a new home.
- Get the family on the same page. Agree on who's making decisions, who's handling money, and what the timeline looks like before anyone starts packing.
- Let your parent choose what comes with them. Assisted living apartments are small. Start with what fits, what matters most, and what family members want.
- Sort the rest. Estate sales, donations, and junk removal can clear a house faster than family weekends.
- Focus on repairs that pay off. Older homes often need updates, but you don't have to fix everything. Here's how to weigh renovating before you sell versus selling as-is.
- Keep the house protected. Leave the utilities on, keep it insured, and have someone check on it regularly.
If you're the adult child doing most of this from Kennesaw or Woodstock while working full-time, ask for help. A good agent can coordinate cleaners, contractors, and photographers so you're not handling every detail.
How Is This Different From Selling An Inherited House?
While your parent is living, the house is still theirs. You're acting on their behalf, through a power of attorney or a conservatorship, and the money from the sale belongs to them, usually to pay for their care.
After a parent passes, the power of attorney ends, and the sale goes through their estate, often with probate court involved. That's a different process with different paperwork. Here's what to know about selling an inherited house in Georgia.
Frequently Asked Questions
Can I sell my parent's house with a power of attorney in Georgia?
Usually, yes, if the power of attorney gives you authority over real estate and was signed correctly, with a witness and an attesting officer such as a notary. Get it to the closing attorney well before closing so they can review it, since it's typically recorded with the deed.
What if my parent has dementia and never signed a power of attorney?
If your parent can no longer make decisions, the probate court can appoint a conservator to manage their property. A conservator can sell the home, but only with court approval. Talk to an elder law attorney about the process.
Will my parent owe capital gains tax if they're in assisted living when the house sells?
Maybe not. If your parent lived in the home for at least 12 months of the last five years and became unable to care for themselves, time in a licensed care facility counts toward the IRS two-year residence requirement. A CPA can confirm how it applies.
Will selling the house affect my parent's Medicaid eligibility?
It can. A home may be exempt from Medicaid's asset limits in some situations, but the cash from a sale can count against them. Georgia also reviews gifts and below-value sales from the past 60 months, so talk to an elder law attorney before listing.
Is it better to sell the house now or keep it until after my parent passes?
It depends on care costs, carrying costs, taxes, and Medicaid. Heirs usually get a stepped-up tax basis on an inherited home, which can reduce capital gains tax, but holding a vacant house costs money every month. A CPA and an elder law attorney can help you compare.
What's The Next Step For Your Family?
Selling a parent's home is part paperwork and part family decision. Confirm who can sign, get advice on taxes and Medicaid before you list, and then take the house one room at a time.
A good first step is knowing what the house is worth today. That number shapes the care budget, the tax conversation, and the timeline. Get a free home value report (CMA) for your parent's home below.
Is Your Parent's Home In Cobb Or Cherokee County?
Find out what the house is worth with a free home value report (CMA).
Ken Mandich is a Realtor® and team lead at Complete Realty Team, serving Metro Atlanta with a focus on Cobb and Cherokee County. As an active real estate investor, Ken brings a rare combination of hands-on investing experience and full-service agent expertise to every seller and buyer he works with. He's built his business around clear communication and walking clients through every step of the process, from pricing a home right to closing with confidence. You can reach him at 404-410-6465 or [email protected].
