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My uncle has been mentally retarded since the age of 2, and has been in an assisted living facility for the past 60 years. I am the only living relative left on that side of the family, and already consent for all of his health needs. He is unable to sign his name and has the mental capacity of a 2 yr old. As I mentioned above, I was given POA over my grandfather when he was in the early stages of dementia. He was the POA over his son, my uncle. Now that my grandfather has passed, how do I go about getting POA over his son, my uncle? I'd appreciate any help or advice here. Thank you.

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Csmith, since your Uncle was unable to function at a level no higher than that of a two year old, I would assume that the care and housing your Uncle is getting is through State government funds.... thus your Uncle could be a ward of the State for the past 60 years.

And as others had mentioned above, only your Uncle can choose who he wants as Power of Attorney, which is impossible with his medical condition. One has to be able to understand the legal document they are signing.

Your Grandfather would not have been able to have Power of Attorney over his son.
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I would talk to his social worker to see if you need to do anthing special. 

My siblings lived in a facility and their social worker told my parents that they should become their conservators so they would have a say in their care.

My parents needed to go to court to get conservatorship. I don't know how much it costs to get conservatorship. This was done in 1990s. 
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Are you sure that your grandfather had POA - rather than guardianship? As others have said, POA has to be granted by a legally competent adult.

Who has been handling his affairs since your grandfather passed? Beyond Social Security are there other assists that need managing?
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If he is in a group home, that agency is the representative payee and handles his finances as a POA would and submits annual reports. My sister is in a group home and has been for 40 years. There's no reason to change POA as long as her funds are handled properly. Yes, I do approve her medical treatment, same as you do.
Guardianship is very expensive, it cost $2500 in 1994 and is probably triple that now. I say leave well enough alone unless something is grossly wrong.
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If he's settled into a facility for the past 60 years, why do you want to take him out? It's likely that he's in the best place for his needs.
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He has been institutionalized for 60 year. It sounds like you are next of kin. Talk to the social worker where he lives -- they might have some suggestions for your situation. Contacting your Area Agency for Aging also.

I understand that going for guardianship can be expensive. Does your uncle have funds you could access for this?

Best wishes to you. You are doing a very fine thing.
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POA can only be assigned by a mentally competent person. You may need to look into legal guardianship, or talk to your local commission on aging or adult protective services for advice.
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