My Mom is in a nursing home with advanced Alzheimers. I as her daughter has had power of attorney of her finances, medical etc already before she became incapable of signing and making decisions on her own behalf. She and my Dad (deceased since 2000) had an active asbestos lawsuit case where settlements have been made, but I cannot not sign as POA or obtain any of the money on behalf of the family. The law firm is telling me that I need to apply for guardianship. Is it worth applying for guardianship and do you have an average cost for this in New York?

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It isn't obvious to me, an interested amateur, why you can't accept the settlement on your mother's behalf. If you can get an independent legal opinion about this I'd do that first. Guardianship is both expensive and onerous; plus, because it's subject to judicial approval, it's not absolutely certain (though this isn't likely to be a problem, seeing that you have acted responsibly and correctly for your parents to date) that you would be appointed your mother's guardian.

Not to be cynical, but is this law firm offering its services for the guardianship application by any chance?
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