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My aunt has POA over my grandmother which has been in place for over 10 years. Grandmother is currently sound of mind completely competent. But my aunt has self diagnosed her "losing her mind" and wants to move in her house and kick my sister out whom has lived there for over 3 years. Can she do this? Does she have to legally evict her?

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Isn't this basically the same issues raised in your earlier post:

"Can grandchildren have rights over children?

https://www.agingcare.com/questions/grandchildren-have-power-of-attorney-over-children-182635.htm

It's easier for anyone who hasn't read or answered your first post to follow the family dynamics by reading that post first.
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Gram is in charge of who is her POA.

Gram is in charge of who lives in her house.

Having someone declared incompetent is far more than a layperson observing that she is "losing her mind."

What does Gram want in this situation?
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She wants my sister to live in her home with her and doesn't want my aunt. But when my aunts were told this they said my grandmother isn't in her right mind and doesn't know what she wants. They say what's to her benefit. My aunt and uncle said they have a document that says they have power over who can live in the house or not. Which they are just saying to try and manipulate us in to giving in. They are not looking out for my grandmothers well being at all. Just today my aunt called and threatened to throw my sister out and said she could legally do so! I think it is all ridiculous! She is only making an issue because she doesn't want to move into the smaller room of the house.
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My question was basically can she legally kick my sister out based solely on her having medical POA?
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I don't see how she can. A medical POA addresses authority to make specific decisions on the medical care of the individual who granted the authority. These would include issues such as treatment or the withholding thereof in the event of specific or general types of medical issues.

Unless your sister morphs into a virus that threatens your grandmother's life (and I'm obviously being facetious), I don't see how the medical proxy could authorize or justify evicting her.

Apparently what your aunt is pursuing however, is a more circuitous route in attempting to lay the foundation for an incompetency declaration of your grandmother, to remove her from the premises and take over.

Since you've stated that a neurological exam has not confirmed this alleged diagnosis, I don't see how your aunt's plan could succeed. I do, however, see that she can make a lot of trouble and cause a lot of aggravation unless she's stopped. Perhaps it's time to contact the police.
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No. She has no authority to kick somebody out of Gram's home. And even if she did, she would have to go through the formal eviction process.

This can all be resolved very simply -- the legal part, that is, not necessarily the family dynamics. Gram can go to an Elder Law attorney and draw up new POA documents, so the aunts (her daughters?) no longer have that role. Encourage her to use a lawyer. Do-it-yourself forms are well and good when there is no one disputing them, but in this case you want the expertise of a lawyer involved.

If Gram doesn't want Aunt to move into her house, the POA does NOT give Aunt the authority to do that, into the bigger or the smaller room.

But instead of fighting over what authority Aunt has, why doesn't Gram simply revoke all authority?
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GardenArtist that is exactly what my aunt is trying to do. The sad thing is grams is such a push over she lets herself be manipulated by them. But enough is enough grams is #1 in my book and I refuse to let her be taken advantage of any longer. Would seeking legal advice be a smart decision even if it means going up against my aunts?
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Legal advice is almost always appropriate if you no longer care about having a relationship with the other parties. However, I think the one seeking the advice should be your sister, she is the one who would be the most affected. Well, her and your grandmother, of course. Can your sister afford a lawyer? Can she afford to find another home to live in if she loses the lawsuit? Is she absolutely unable to get along with the aunts (and uncles)?

In this country, anyone can hire a lawyer and sue anyone for anything. It is one of our privileges. However, winning that lawsuit is never a given.

Make sure your grandmother actually wants you to pursue this avenue. Since she is "of sound mind", she has the right to make decisions even if you don't like that decision. Right or wrong, it is hers to make until, and only until, she has been deemed incompetent. Otherwise, you are making decisions in your best interest, which is what you accuse the aunts of doing.

Best wishes.
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