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My mother's medical POA has a clause that reads: "EFFECT ON LEGAL CAPACITY: My agent's (me) exercise of authority shall not require or imply a formal adjudication of incapacity." That means that I can step in and make decisions for her prior to a doctor, for example, diagnosing her with dementia/Alsheimer's, yes? Although I do understand that placing her in a care facility will require a doctor's diagnosis.

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It only means that a you are not required to have a court order. (Adjudication is the process of going to court)
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