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The gift is a watch that, along with a few other items, was intended to be sold to help pay for his care. He wanted it a bit longer but I think he would reach a point where he won't even be aware of where or who he is.. but he'll still require care at which point it would be sold. I don't think the HCP should accept the gift but apparently there isn't a regulation that prevents it. How would you approach this with the HCP so she's not resentful and shirks on his care? The nurse operates this business out of her personal residence in AZ. Ethically this is not kosher and the HCP should reject the offer. The HCP is very "religious" but she's been sneaky about things that I don't trust her. My relative is 2600 miles away so its not something that I can handle myself directly.

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It’s wrong of any hired caregiver to accept a gift from a person with dementia. I’d definitely try to appeal to reason to get the gift returned. Maybe mention putting out some negative reviews on her business. Seems like time for a new caregiver
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If you are acting as POA for all financial aspects then you should have prevented this "gifting" of any thing of value.
I realize you are a distance so that might not have been possible.
If this person does not return anything of value that was given to her by the patient I would consult with an attorney and have them send a letter I would also report this person to APs for Financial Abuse of a vulnerable elder.
And I would be looking for another caregiver!
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