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He has a daughter who is POA over his medical but won't help him. He also has early signs of dementia and was placed in a nursing home.

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If he has dementia he cannot assign a POA. A fiduciary is a licensed and trained person assigned by the court. This gentleman will become a ward of the state and the state court will supply a fiduciary. You would not get guardianship on this "friend" without family. Let the social workers at VA know he is in need of guardianship and someone to handle his bills and finances.
No one ever "gets" POA or Fiduciary. POA is conferred on you by a competent person who asks you to act for him as he directs while he is competent and for him as he would have wished if he descends into incompetency. It is too late now for him, as he has already some dementia.
His daughter can tell the VA she doesn't wish to be POA for finances and would like to make him a ward of the state.
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If you are interested in serving as a fiduciary, submit a request with the beneficiary's name and VA file number, along with your name and contact information, to your nearest VA regional office. You can find your nearest office at https://www.va.gov/directory/guide/division.asp?dnum=3 or by calling 800-827-1000.

When I became the federal fiduciary for my mom who received widow's Aid & Attendance benefits from my father who was the veteran, I had to get 2 character references written and submitted as well, and I'm her daughter, who was managing her entire LIFE for 10.5 years. :( The VA assigns a field agent who comes out to visit the beneficiary every once in a while, and you'll have to be present as well, plus they'll expect you to provide records as to how the money is being spent. You'll need to keep a separate bank account (for direct deposit of the VA checks) with checks that show her name, and your name as the federal fiduciary. It's a lot of hoops to jump thru, really, so I would suggest the POA daughter should be the one to do this!

Good luck!
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