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No! Unless she has her power of attorney.
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Does SIL want to sell the house b/c you're living in it with your MIL?
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You and your husband live with MIL, and yet she has given POA to a daughter? How did that come about?

What does MIL want in this situation? To sell the house? Unless MIL has been declared by a court to be incompetent, the POA should help her do what she wants to do with her finances.
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My SIL is POA and says my mother in law is not capable of making any decisions? But she seems sane and capable to me? But is a little forgetful? But I should know my husband and I live with her not my SIL!
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Is the SIL a guardian? Does she have financial POA? What is MIL's mental health status? We'll need a few more details.
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