My stepmother is in a home. The state has her under care. Can her niece sell her car because she is deemed incompetent?

No. If Medicaid is paying for her care this could be deemed as fraud. The car has to sell at Market Value and the proceeds going for SMs care. If she is incompetent not sure if her signing the title is legal. To receive Medicaid SM had to spend down to what her state allows, in NJ thats 2K. She is not allowed any money over this amount.