Can my sister spend our moms money to build a house on her own land while mom is still alive in nursing home incapacitated?

That probably would be considered a breach of her fiduciary duty; there may be criminal penalties for that kind of action.

Well said by all previous posters! Esp. Like your clear, short, factual and informative note, Susan....
As Mom's POA myself, this sense of "entitlement" for self profit while the elder is still living, just pushes all my "hot" buttons.
WRONG, WRONG, WRONG....both legally and ethically....

I just dropped my dentures. This is so criminally immoral you should file charges. The nerve! She doesn't even have the decency to wait until Mom has passed. ... The expletives are dancing on my lips, so let me stop before I say something I'll regret.

The is a big "NO". Said monies belongs to Mom, and cannot be touch until Mom passes on and the Will is read.

And if Mom is using Medicaid, Medicaid will want their share to help pay for Mom's care.

NO any POA who uses their POA for self -benefit is breaking the law.

No Way! That money must be kept until she passes on! She may very well need that money for her care in the future! Whatever is your sister thinking!

Just throwing my opinion in as well, but agreeing with everyone else - that's a huge NO. If sister is the POA, her responsibility is to use Mom's money for Mom's care and to pay Mom's bills - nothing else. She absolutely cannot use it to build a house, regardless of who it's for.

Contact an attorney specializing in elder law if necessary.

I apologize for the duplicate post. The first one disappeared, as did a lot of other posts I wrote. Then suddenly it appeared after I posted a second time.

Must be gremlins in cyberspace acting out again.

Not meaning to be disrespectful of your mom and her condition but since this is so alarming I wonder If your mom has a will? Is your sister the executrix? As a POA she will no longer have automatic access to your moms estate after your mom passes. Then the executor of the will has control. If sister has her name on moms bank account to be paid on death or as a joint account then that's a different problem if sister is intending to take the bank account for herself. I have read that in some states the person who is named executor of a will isn't necessarily appointed by the probate court if someone else makes the proper application and is appointed instead. It sounds like the heirs should consult with an elder attorney soon in order to put sister on notice. I'm sorry for your moms condition and that you have this extra burden. I hope it's a misunderstanding. Not sure how it could be but I hope it is.

NO she can't and shouldn't. You'll have to ask fast and contact an attorney. The things that caregivers who were entrusted with money sometimes do makes my blood boil. I'm so sorry for your situation, I've been through something similar and had to fight for the POA to prevent financial abuse by family. Stand up to your sister and nip it in the bud. I wish you luck.