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Is it legal for her to spend her mom's benefits? POA was done illegally as well. What can my husband and I do?

No, its not legal for SIL to spend MILs SS check unless it is on Mom.

I agree, if Mom is on Medicaid for her care, then the NH should be receiving the SS check and any pension Mom maybe receiving. Moms check should be direct deposited in her account and sister needs to be on the acct to access it. The government does not except POAs. Call ur SS office and see if a payee has been established, if not husband maybe able to become one. You may try and call the NHs billing department and see how Moms acct is set up. But. if DH does not have POA, they may not give out that info.

Now do You mean SSI as Social Security Insurance? Or do you mean SSI as an income suppliment thru your County Social Service Dept. If this is what you mean, then that means Mom is probably on Medicaid for her care and that Supplemental stops. Its considered a Welfare. You can't get Medicaid for care in a NH and the Supplimental too. If this is Sister is spending, then that is fraud and as such should be reported. She faces paying that back and maybe jail time.
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Reply to JoAnn29
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worriedinCali Sep 21, 2019
The OP cannot just call and get information Joann. SS isn’t going to tell her a darn thing.
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I echo BarbB's questions:   how do you know that SIL is in fact spending her mother's money?   And how do you know that the POA was illegally done?    Did an attorney confirm it was an illegal POA?
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Reply to GardenArtist
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Before MIL went into nursing home financial information had to be provided with her Social Security number. Most likely, the nursing home is receiving the Social Security checks, as at least, partial payment for their services unless MIL has significant funds to self pay. Even in that case I would imagine that her SS is a portion of that payment.
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Reply to gladimhere
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If the source of your information is MIL, with dementia, make sure you verify her story. I sincerely doubt that her SS is going to anyone other than the NH.

Your husband can talk to the business office and ask if they are receiving her check.
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Reply to BarbBrooklyn
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Something doesn't make sense because nursing home won't keep MIL without being paid. If MIL is on Medicaid, most of her SS check goes to Nursing home and if it doesn't, they go after SIL.
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Reply to mstrbill
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How is the nursing home being paid?

How do you know about SIL spending MIL's funds?
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