Limits on POA for Homestead

               Both Kansas and Missouri have many legal protections for a person’s homestead.  Protection in bankruptcy, limitations on creditor rights and beneficial tax provisions are a few of the benefits of home ownership.  With some limitations for value and acreage, a person’s homestead is excluded from the resource calculations to determine VA Aid and Attendance and Medicaid eligibility.  Therefore it is not surprising that Kansas and Missouri limit an agent’s ability to sell, mortgage, gift, or transfer the homestead of the principal.  Kansas statutes require that the financial power of attorney specifically allow an agent to be able to transfer ownership of a homestead.  Missouri does not have a statute prohibiting an agent from dealing with a homestead.  However Missouri case law could expose the agent to liability for the transfer of a homestead if the agent were to receive any benefit, now or in the future, from the transfer.  Therefore the durable power of attorney should have specific language to allow the agent to deal with the homestead to allow the agent full flexibility to meet the needs of the principal.