Can DPOA be taken away by a person getting guardianship illegally?

Guardianship goes thru the court before a judge. Your nieces must have shown some kind of proof for the Judge to award them guardianship. MIL must have been found incompetent to make her own decisions. From what I understand, she also has to be in court.

The Judge may have allowed the cost to obtain guardianship to come out of MILs money. Your nieces now have to account for every penny they spend of MILs money to the State. If MIL is now in LTC, then the nieces have the right to sell off her house to pay for her care. When money is gone, then they will need to apply for Medicaid.

There is no inheritance till the person dies. All MILs assets need to be used for her care. Medicaid allows u to keep a house but better you don't have one. Because, if its sold while you are on Medicaid the proceeds go to your care. If its sold after u pass, then Medicaid can recoup what they put out for your care. What beneficiaries receive depends on how long the person was on Medicaid. So you see, your DH and BIL would get nothing anyway.

And yes, as said, guardianship overrides DPOA. That is now null and void.

If MIL has a will, at the time of her death the Executor takes over. All debts will be paid and what is left over will be distributed to the beneficiaries. If no will, an Administrator can be appointed and they will need to follow the laws of the State which usually means the closest living relatives get any assets left after debts are paid.

Yes, you can sue in small claims court for your possessions but can u prove they were yours? Receipts ect. You probably need to sue for false allegations. And again, you need to prove they were false. Kind of hard when nieces received guardianship based on these allegations.

I think at this point, since you can't afford to pay a lawyer to contest the guardianship, you will just need to let it go. The courts will probably see that MIL is safe and cared for. That her money is being overseen by the State. I don't feel u'll win at this point.

What happened in court?

My experience has been that the judge makes it very clear what everyone involved is expected to do. I never left a court room wondering what next.

Your mom would have been appointed counsel, perhaps they can clarify the facts of guardianship in a way that helps you understand what power they have to do or not to do where your mom is involved. They can also explain how the DPOA is no longer valid when a guardian has been appointed.

Your mother had a guardian ad litem during guardianship proceedings. Was your mother not able to say "I want to be with my sons and dil"?

Guardianship overrides DPOA. Did court order negate guardianship? Then did court reenact the DPOA? You need to speak with an elder law attorney.

Try contacting Adult Protective Services.

See an attorney. Have no idea. Best wishes to you.