If a family member is deported: money, papers and the house

When someone in your family is deported, or decides to leave, household life does not stop. The accounts, mortgage, rent and utilities are still in their name, and often no one else can handle them. This guide explains, with what the CFPB, ICE and the IRS say, how you can decide who will help with the money, what a power of attorney is and its risks, what happens to the house and how to send money afterward. It does not give immigration advice or replace a lawyer.

Basic duties of someone who manages another person's money under a power of attorney

4³

To cancel, generally, a money transfer to another country

30 minutes⁷

The general FIRPTA withholding when a foreign person sells

15%⁶

First: who will help with the money

Many accounts are in one person’s name. If that person is gone, the bank, the power company or the mortgage servicer will not talk to just anyone. That is why it helps to decide early who will help and how, ideally before your family member leaves or while they can still sign.

The CFPB explains three options for a relative or friend to help with bills and banking:¹

• A convenience account. The helper can make deposits, withdrawals and checks, but the money still belongs to the account owner. The risk is that they can also withdraw money for their own use. The CFPB advises asking specifically for a convenience account and saying you do not want a joint account.
• A trusted contact. That person has no access to the money, but the institution may call them if it sees signs of financial exploitation.
• A power of attorney. The agent handles the banking and the account stays in the owner’s name. If the document is shared with the bank, the bank should honor it and let the agent handle transactions.

What about a joint account? The CFPB says that if you do not want your money to become the other person’s when you die, avoid a joint account with right of survivorshipjoint tenancy with right of survivorshipJoint tenancy with right of survivorship is a way for two or more people to own property, each with an equal, undivided interest in the whole. When one owner dies, that share passes to the surviving owners, not to the owner's heirs; that is the main difference from a tenancy in common. Generally the deed has to say so; if it does not, the ownership is presumed to be a tenancy in common. That is the case, for example, in Arizona and Florida, where the law requires the deed to state the right of survivorship expressly.See the full definitionClose.¹ If the person staying in the U.S. has no account of their own, our guide How to open a bank account without a Social Security number explains which documents many banks and credit unionscredit unionA credit union is a not-for-profit financial institution that, like a bank, accepts deposits, makes loans and offers other services, but is owned by its members. Members elect a volunteer board of directors, and profits go back to them as lower fees, higher savings rates and lower loan rates. To join you need a common bond, such as your employer, your family, where you live or a group you belong to. It is chartered by the NCUA, a federal agency, or by a state. If the credit union is federally insured, your deposits are protected by the NCUA's insurance fund.See the full definitionClose accept.

Three ways someone can help with the money

For everyday bills

Convenience account

• The helper can deposit, withdraw and write checks
• The money still belongs to the account owner
• Risk: they can withdraw money for their own use

For alerts

Trusted contact

• Has no access to the money
• The institution may call them if it sees signs of abuse
• Cannot pay bills

To handle everything

Power of attorney

• The agent acts on the owner's behalf
• The bank should honor it when shown
• Gives a lot of authority without oversight; can be revoked

For someone leaving the country, many families need a power of attorney; ask the bank what it accepts.

The power of attorney: what it is and its risks

According to the CFPB, a power of attorneypower of attorney (POA)A power of attorney (POA) is a legal document that lets someone else act on your behalf. That person is called your agent. A financial power of attorney can help you plan ahead: it is generally "durable," meaning it stays in effect even if you can no longer make decisions. It can also be for something short-term, such as paying bills while you are away. If you show it to your bank, the bank should let your agent handle transactions for you. The CFPB warns that it gives a lot of authority over your money without regular oversight, so choose someone you trust deeply.See the full definitionClose is a legal document that lets someone else, called an agent, act on your behalf. It is usually durable: it stays in effect even if you lose the ability to make decisions. It can also be temporary, for example so someone can pay your bills while you are out of the country.²

A power of attorney is serious. It gives someone else a great deal of authority over your money without regular oversight. You can change or revoke it if that person is no longer the right choice. The CFPB says a lawyer can help protect you against abuse and that, if you cannot afford one, you may be able to use free legal aid programs. It also says many states have laws to protect against power of attorney abuse.² Each state sets how a power of attorney is signed (before a notary, with witnesses or another way), so ask your local legal aid what your state requires. LSC has a finder by address or city.⁹

One more thing: a power of attorney made to be used in the United States and one made to be used in Mexico are not the same. If your family member has property in Mexico, read our guide Buying or inheriting a home in Mexico, which explains the powers of attorney Mexican consulates prepare.

If you are named agent: your four duties

If your family member gives you a power of attorney, you start managing their money. The CFPB explains, in its guide for agents, that a person managing someone else’s money is a fiduciary with four basic duties:³

1. Act only in their best interest, not yours or anyone else’s.
2. Manage their money and property carefully.
3. Keep their money and property separate from yours. Do not mix them in your account.
4. Keep good records of everything you pay and receive.

The same guide says your family member can take away your authority at any time while they can still decide, and that your authority ends when they die.³ Keep every receipt, even for a small bill. If anyone ever asks what happened to the money, those papers protect you.

Putting the money and papers in order, step by step

1. 1. Make the list of accounts

   Today

   Bank, cards, loans, mortgage or rent, utilities and insurance, with each one's phone number.

2. 2. Decide who will help

   Before they leave

   Convenience account, trusted contact or power of attorney.¹

3. 3. Get legal help with the power of attorney

   Before signing

   Each state sets how it is signed; free legal aid can guide you.²

4. 4. If they are detained, ask their lawyer

   While they are detained

   For parents of minors with a final order, ICE says it should let them sign powers of attorney before removal.⁴

5. 5. Take the power of attorney to the bank and the servicer

   Once you have it

   The bank should honor it; ask what copy each one needs.¹

6. 6. Keep records of everything

   Every month

   Keep their money separate from yours and save every receipt.³

If they are detained: signing papers before removal

If your family member is detained, first find them only through official channels. According to ICE, the online detainee locator may show where they are held. To speak with them or their deportation officer, you contact the ERO field office where they are held. ICE’s Detention Reporting and Information Line is 1-888-351-4024, Monday through Friday, 8 a.m. to 8 p.m. Eastern Time.⁵

If your family member is a parent or guardian of minor children, one policy matters. Under ICE Directive 11064.4, when they have a final order of removal and ICE is carrying it out, ICE officers should, to the extent practicable, give them a reasonable opportunity to talk with their legal representative and a way to contact consulates, notaries, courts or family members before removal. The goal is for them to sign the necessary documents, such as powers of attorney, passport applications or appointments of guardians, and to prepare.⁴ Parental interests inquiries go to ICE through the ERO contact form, choosing “Parental Interests.”⁵

Ask their lawyer or accredited representative to help you coordinate it. Never pay a “notario” or a consultant who promises results in their case.⁸

The house: the mortgage, the rent or a sale

The house does not wait. If you own, the mortgage, property tax and insurance still need to be paid even if the owner is no longer in the country. If you rent, the lease is still in effect. The worst thing is to stop paying without telling anyone.

• If you have a mortgage. Call the loan servicerloan servicerThe loan servicer is the company that sends you your mortgage statements and handles the day-to-day tasks of the loan: it processes your payments, answers your questions, keeps track of principal and interest paid and manages your escrow account, if you have one. It can also offer options if you fall behind and, in certain cases, start a foreclosure. It may be the same company that lent you the money or a different one, and it is common for another company to take over the loan after closing.See the full definitionClose before the first late payment and ask what options there are. Our guide If you can’t pay your mortgage explains the federal rules that protect you. If you have a power of attorney, ask the servicer what it needs to talk to the agent.
• If you rent. Talk to the landlord early. Our guide If you can’t pay your rent explains how to ask for a payment plan and where to find help.
• If you plan to rent out the house. Our guide Renting out a room or unit explains the basics of being a landlord.
• If the house will sit empty. Keep an eye on it and check that no one changes the title. Our guide Deed theft and title fraud explains how to protect the deeddeedA deed is the legal document the seller uses to transfer ownership of the home to you. The seller signs it at closing, it lists the names of all the buyers and you receive a copy. Afterward, the settlement agent records it with the county records office; that recording puts the public on notice that you are now the owner. There are several types: a warranty deed gives the most promises about the title, and a quitclaim deed promises nothing. Do not confuse it with a deed of trust, which is the mortgage document.See the full definitionClose.

If you decide to sell. According to the IRS, when a foreign person sells U.S. real property, the sale is subject to FIRPTA withholding. It is generally 15% of the amount realized, and in most cases the buyer must withhold it; if the buyer does not, it may be liable for the tax. There is an exception when the amount is $300,000 or less and the buyer plans to live in the home.⁶ Our guide Taxes when you sell your home and FIRPTA explains who counts as a foreign person and how any excess withholding is recovered.

Example with real numbers

A family that stays in the home when the father is deported

An example in words, not a real case, of how they can organize it.

Whose name the mortgage and the account are in

Only the father's

What he signed before leaving

A power of attorney naming the mother, with help from legal aid

What the mother does with it

Takes a copy to the bank and to the mortgage servicer

How she handles the money

Keeps his money separate from hers and saves every receipt

If they later decide to sell

They check with the closing whether FIRPTA withholding applies

What they achieve

Paying on time, keeping the home and having everything in order

The rules in the example come from the CFPB and the IRS.³ Use the budget tool to see how to cover the mortgage with one income less.

Run it with your numbersFamily budget

Sending money to another country

If your family member is already back in their country, you may send them money. Know your rights. According to the CFPB, before you pay you generally see the total cost of the transfer, with taxes and fees, and the exchange rate. Afterward you get a receipt that says when the money will be available and what to do in case of an error. You can generally cancel within 30 minutes after sending, unless it was already picked up or deposited. You can report a problem up to 180 days from the date the money was available, and if the company does not fix it, you can complain to the CFPB.⁷

Compare companies before you send: since they show you the total cost and the exchange rate before you pay, you can see which one works best for you. Our guide Sending money abroad explains the tax on remittancesremittance transferA remittance transfer is an electronic money transfer you send from the United States to a person or company in another country through a remittance transfer provider, such as a bank or another financial services company. Federal law protects transfers above a minimum amount made by a provider in the normal course of its business. The provider must tell you, before and after you pay, the fees, taxes, exchange rate and how much the other person will receive, in your language if it advertises in it or served you in it. You have up to thirty minutes to cancel at no charge, if the money has not been picked up, and one hundred eighty days to report an error.See the full definitionClose and how it affects cash transfers.

If this is you

Your husband was deported and the account is in his name

Ask the bank what it needs; the CFPB explains the convenience account and the power of attorney, and legal aid can guide you.¹

Your family member is detained and has minor children

ICE says it should give them the chance to sign powers of attorney before removal; ask their lawyer.⁴

You own the home and want to sell

If a foreign person sells, the buyer generally withholds 15% under FIRPTA.⁶

You rent and the lease is in their name

Talk to the landlord early; with a power of attorney, you can act for your family member.²

You were named agent for your son or daughter

Act only in their interest, keep their money separate from yours and keep records.³

Mistakes that cost you

• Mistake: Waiting until they leave to think about the money.

  Instead: Decide beforehand who will help: convenience account, trusted contact or power of attorney.¹

• Mistake: Giving anyone a power of attorney because you are in a hurry.

  Instead: A power of attorney gives a lot of authority without oversight; give it only to someone you trust deeply.²

• Mistake: Mixing their money with yours in the same account.

  Instead: As agent, keep their money separate and keep records.³

• Mistake: Opening a joint account without knowing what it means.

  Instead: With right of survivorship, the money goes to the other person when the owner dies.¹

• Mistake: Paying a notario for the immigration case.

  Instead: Only a lawyer or an accredited representative can give legal advice.⁸

• Mistake: Selling the house without asking about FIRPTA.

  Instead: If a foreign person sells, there is generally a 15% withholding.⁶

What to do this week

1. Make a list of every account in your family member’s name, with each one’s phone number.
2. Decide who will help with the money and how.¹
3. Find free legal aid to prepare the power of attorney under your state’s rules.⁹
4. If they are detained and have minor children, ask their lawyer to coordinate the signing of papers with ICE.⁴
5. Call the mortgage servicer or the landlord before the first late payment.
6. If you will send them money, compare the total cost and keep every receipt.⁷