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I have been a caregiver to both of my parents and live in their home. My brother is the power of attorney and my father (mother now deceased) is in rehab. My brother has told me my father will not be allowed to go back home and I have to get out because he is selling the house. My father objects. Can he do that? Brother does not live there.

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As long as your father is considered competent, his wishes should be listened to. I think your brother is on a POA power trip. What has your father's doctor said about him going home from rehab?
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You could talk to you dad's doctor and get in home physical therapy. Also check to see if your dad will change the POA to your brother doing the finances and you doing the medical decisions.
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If it gets very bad and your brother insists on this course, and you feel you cannot allow it to occur, you might have to see a lawyer and see if it is possible to revoke the Power of Attorney and have it reassigned. I was POA for my mom when she was alive and the document said I could make any decision, but there has to be something you can do.
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You may want to consult an attorney of your own.

When brother says Dad "will not be allowed to go back home" -- is he quoting a doctor or some medical professional, or is he making that decision on his own? Does he have both Financial and Medical POA? And, most important of all, has Dad been declared legally incompetent?

If Dad is still competent to make decisions, he can decide to name you POA, for example.
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If the strokes have left Dad incompetent and the doctors certify this has happened, then the Durable Power of Attorney becomes effective. Assets have to be used to provide care for the patient and only for that purpose. If the POA were to say "OK bro you can keep the house", he would be in deep doo doo with the law. His hands are tied.
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As you can see from the answers, it is critical as to whether your father is "competent" in the legal sense to make decisions for himself. As Pam points out, if he is not then his POA is obligated to act in his best interests, as he sees them.

So the important first question is, has Dad been declared by a court to be incompetent? If not, would he likely to be if it went to court -- are there doctors who would say that he can no longer act in his own best interests? Start there.
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A "caretaker child," who is defined as a child of the applicant who lived in the house for at least two years prior to the applicant's institutionalization and who during that period provided care that allowed the applicant to avoid a nursing home stay. This gives you the right to file a temporary injunction on the POA due to your dad's competency being questioned.
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