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My mentally disabled older brother now lives with me. His Dr. says I need to fill out paper work to become his legal POA and or legal guardian. I believe this is for medical reasons only. Would doing this make me responsible for anything else?

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Becoming financial POA will not make you responsible for anything. Except responsible NOT to steal his money. POA will make it easier for you to get information about him and to use his money to pay his bills and buy things for him as needed.
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If you are made his medical POA it is only for medical decisions. The forms should be clear regarding this. Talk to a lawyer about becoming his POA. If you also become his financial POA this should also be clearly stated in the documentation. You really need to set up an appointment and speak with a lawyer. They will put you on the right path.
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