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My mom is presently poa for dementia sister. Other two sisters not capable of becoming poa in case my mom passes. What do we do with dementia sister and no other younger person to step in for dementia sister that is still living?

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A member of the family, if qualified, and if willing is appointed conservator or guardian by the court.
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If the county takes over guardianship in the instance that your mom, the PoA, pre-deceases her sister then the county would pursue guardianship and move her into a LTC facility of their choosing (based on Medicaid bed availability, if she requires financial aid).

Since this is what would happen, it may be wise to transition her now since your mom would be able to research and choose a good, reputable facility (that accepts Medicaid). Once she is established in a good place (on private pay) she cannot be removed even if she did eventually require Medicaid. The county guardian would probably end up putting the demented sister in a lesser quality county-run facility. I recommend your mom execute control now while someone in the family still has it.
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The State will take over guardianship. Contact APS when the need arises.
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