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My wife’s mom has power of attorney over health and financial. But she has said multiple times she only is because of her social security and getting a free ride. My wife and I were wanting to figure out if we can somehow override the POA and have her live with us. Grandma is of sane mind and can still make decisions on her own just needs help with meds and bills. And advice would be of great help!

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Grandmother being of sound mind means she can change POA and how her money is handled. Is she willing to do so, even when it’s framed that her future may depend on doing so? Many people feel some family obligation, even to those who may be harmful. Take grandma to see an elder care lawyer who will help her see her best options
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If grandma is competent she can change POA.
If grandma is competent she can move wherever she wants.
If your wife’s mother is abusing grandmas funds she can be reported.
Grandma can have funds deposited how she wants and can remove her daughter from any account.
A visit to an Elder Care Attorney might be in order
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