The POA says I can transact real estate business. She has severe dementia and is in assisted living but wants to come home and would never agree to sell her home. Can I sell her home and put proceeds in her account to help pay for her bills? She was able to pass her latest dementia tests (although its documented that she had severe dementia by several doctors in the past several years). I think she has memorized the answers (like the year and who is president). All the docs agree she should never return home for her own safety and she is where she needs to be. She thinks we are her enemy and will not talk with my husband and I (who are her only relatives). In the meantime, we are funding the Asssisted living but can't do that for much longer.
My Moms POA was immediate which needed no doctor competency letter. I set up the sale, and cleaned the house out. She new nothing about it. You have to tell yourself "I am now in charge" and do it. You are not obligated to tell Mom anything. She would not understand anyway.
You POA allows you expert advice and you badly need it now.
Of course she cannot return to her house, and it is right that it be sold now for her care, but it can also be kept and maintained and she can be on Medicaid.
See an elder law attorney for options, and best of luck to you.