She was in the hospital for fluid in her lungs and around her heart. The nurse said there was no mention of dementia in her chart. And if she did have dementia she couldn’t be in that room or on that floor. Is there any law to protect a person from a guardian putting them in a place they don’t belong? She doesn’t have dementia. The doctor says her mind is working the way it should for being 85 yrs old. She’s living on a floor where the other residents aren’t aware of what’s going on. The aides take her property right in front of her . She asks them where their going with her books and they keep walking. Her mind is as sharp as a tack. That’s why I’m asking is it legal for a guardian to do that to a elderly person?

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Chococake85, there are times when there are no available beds in the unit for that person, so they are placed elsewhere.

Example, at the hospital where I do volunteer work [haven't been there since March due to covid].... adult patients were placed in the children ward when there was a shortage of beds in other units. Once a bed opens up, that adult is then moved to that unit.
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Who is this guardian who's attempting to place her in a dementia unit?   I assume this is a court appointed guardian?

And where is she?  In a hospital for temporary treatment, or someplace else, given that you've written residents are stealing her property?   

I would get documentation from the hospital and any of her doctors in a position and willing to affirm that dementia is not in the picture, hasn't been D'X'ed and isn't a factor for placement.   

Then I would find an attorney who handles guardianships and file a petition to revoke the appointment of the guardian, or replace him/her with someone else.   I would also ask for injunctive relief to prevent the guardian from disposing of any assets pending locating placement for your mother.
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