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No POA or legal guardian- no money to afford lawyer or pay his debt. He doesn’t have any health insurance.

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Let him go, let him go,
He's just a chromosome donor...
Let him go, let him go,
Turn away and slam that door!
I don't care what there going to say,
Let the storm rage on.
The cold never bothered me anyway.

Yes, let the state take care of him. It's why we pay taxes. Good call.
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Yes, and just let it happen. Your father is judgement proof, so the lawsuit means nothing. As for becoming a ward of the state contact a local aging advocate or a social worker.
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Yes, and I would just let nature take its course here. It will soon enough become clear to those filing to sue that your father has nothing to get. If there is a home they may put a lein on it, but the state will swoop in to recollect medicaid money long before that is the case. As you have clearly got a father who has not deserved nor earned your respect and caring I would simply allow things to progress. You could consider writing a letter to the person sueing telling them that your father has absolutely nothing, and that he has no means, with his current medical condition, of responding to a lawsuit, but see to it that you do not become at all involved in any way yourself. Accepting POA or guardianship would leave YOU as the one that everyone tells to complete the three thousand pages necessary for him to get medicaid. As it stands now a social worker will be assigned that. He or she is trained for it and it will be easy to do, whereas for you it would become an utter nightmare for someone who has not done anything to deserve all that caring. I am assuming that your father is in care now, as he has had this stroke? If so, report all of this directly to his Social Worker where he is at. Remember, it is important here that you do not become involved in this mess. Geaton777 below has great advice for you as well.
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What state is he in? In MN, he can become a ward of the state. I went through this with a jerk of a stepFIL. He was a loafer who had debt and never saved a penny His own bio children wanted nothing to do with him. But he was married to my husband's mother and they lived a few miles from us. His wife had cognitive decline and he had Parkinsons and just assumed (demanded!) that we'd take care of both of them. My husband had PoA for his mom but the SFIL wouldn't give anyone PoA for him just so we could help him take care of his affairs. Nor would he apply for Medicaid. I gave him an ultimatum: either give someone PoA or become a ward of the state. I don't think he believed me. He died alone as a ward of the state. If it matters, when he becomes a ward no longer will have any input or authority over anything for him at that point. They (his assigned guardian) will contact you when he passes to let you know what you want done with his remains (you don't have to accept them and you won't be financially responsible). You will need to contact the county (Health and Human Services) and talk to a social worker to let them know he is a "vulnerable adult". That should get the ball rolling.
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