My grandma passed away several years ago. Before her death, herself and my grandfather created a living trust. Since grandma has died, grandfather remarried. My grandfather now has dementia, and his current wife has somehow obtained his POA and is starting to combine assets and spend TONS of his money... what can we do to stop this before she gets into the trust and spends it and sells the home that is in the trust?
Do you really know all the details of their finances that freqflyer mentions? If you do and you have any evidence of coercion or undue influence you could call APS and asks them to investigate. I don't suggest this if what you have is just a vague suspicion.
When your Grandfather got re-married, and if he had a lot of assets, did he get a pre-nup signed by his new wife? I assumed that a new Will was made, and probably the Trust had been updated, or changed into a different type of Trust. If Grandfather did that while in clear mind, that was his choice to do so.