My husband has power of attorney over his brother who is mentally challenged and physically handicapped. We live in the house that his brother has lived in for 60 years and take care of him. The house is deeded to my husband and his son. His son doesn't want anything to do with the house and wants to sell. My husband wants to stay in the house and take care of his brother. Is there any way my husband can give his brother a life estate while only owning half of the house?
Not really. The only thing your husband could give his brother would be a life estate in your husband's 1/2 undivided interest. But that would not be a good idea. It would tie up the property (A "mentally challenged" owner would not be able to sell his interest without court approval.), and wouldn't really solve the problem.
The son wants to sell. He can't. His only option now is to sue your husband/ his father for partition. Giving the brother a life estate would still leave the son no choice but to go to court. The only difference is that the brother's share of the proceeds of a sale would be somehow tied up for the benefit of the brother.
I don't know why your husband would do anything. Just because his son wants something doesn't mean he will get it. An old saying applies here: "It it isn't broken, don't try to fix it."