Driving restrictions; am I liable if she has an accident?

You are legally liable! And you do NOT want to be responsible for an innocent bystander's death. You do NOT have to be the bad guy - involve the police. Do it now - my kids play out there!

If the DMV didn't revoke the license it means nothing. Did you get a letter from the DMV? The police can't take anything. I can write to the president to lawn my front lawn and it means nothing...you need to do it yourself (write the DMV) with supporting documents like your doc's letter but you need to do all the paper work and receive the letter telling him he must reapply or stop driving.

If I had tried to "take my hubby's keys" it would have ended in a physical altercation. I kid you not. Just saying "Take the keys" is NOT THAT EASY. He would have literally hit me if I had tried that route.

I would talk to your attorney to see if you are liable. Don't take the word of any of us, we might not live in your state.

In my case, he believed the doctor and gave me the keys. Then he took them back and was going to drive no matter what. It happened that my car was parked behind his truck in the driveway, so he couldn't drive. I didn't move it for three days. Finally, I told him I needed to put my car in the shop. which was true. and if he didn't let me drive his truck I would have to spend money (gasp) to rent a car. So, he gave up his keys. Then in a moment of clarity he wanted a grandson to have the truck because he was driving and didn't have one. I had that truck out of there that afternoon.

well she can't drive if the car is removed from her residence.  find some way to remove her car and park it where you live.  keep the keys and if she questions where they are, say you will look for them, but "don't ever find them".....just tell her you will keep looking but don't ever find them.  I would check with your elder attorney to see if you are liable but I doubt it.  She would be held liable and could lose her home.  maybe tell her in a nice way that its dangerous to be driving now with all the people not paying attention and that IF she was to be in an accident, she could lose her home and be homeless.

It is all well and good to argue over whether or not poster would be liable when that is only determined once a lawsuit has been filed, fees to defense attorneys have been paid and a judge renders a decision!

As POA, you have a fiduciary responsibility to your aunt. That means you are obligated to inform her car insurance company that her license has been revoked. That means that if she drives, she is an uninsured driver, which is against the law. That means that if she has an accident causing bodily injury (or death) to someone else, that she will be sued. The attorneys will find out that you are her POA. The attorneys will scrutinize your actions. The attorneys will likely argue that you owed a duty of care to the plaintiff because you owed a duty of care to your aunt and you were negligent in your duty by allowing her to drive while uninsured. I may not be an attorney but I do follow interesting legal battles.

Took us what seemed like forever to get through to Mom that she could no longer drive.  Several conversations to no avail.  Even her favorite niece talking to her did not help.  Finally her Dr. told her and notified the DMV so the letter came telling her, she was livid.  I was still not sure she would stop so fortunately her living in a small town we contacted the local police department and an officer we knew stopped in uniform to talk to her.  He told her if they saw her driving they would come take her car.  That was the end of it.  She was keeping that car for her grandson and she finally agreed to let either her sister or I do all the driving for her.