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I am his POA he was to live with her on the temp basis. I recently asked for him to come back to my home. She stated that I am under a lot of stress and could use this break. The stress I am still under because she is spending his entire 2,800 each month on her family. She has had him for 2 months. If I try to take him, I feel that this will create a big family mess. What am I to do? Also, dad doctor require that a keep a daily log of his blood sugars and high blood pressure readings This is something that she does not do.

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Right now your sister is housing and providing care for your father. Was there any financial agreement to this temporary basis? What family mess could be created when your sister is asking for a break? As your father's POA you have the responsibility and authority to use your father's money for his care. How is it that your sister has full access to the 2,800 a month? Your father needs a place to live and someone to provide care for him which costs money. Ignoring family conflict, are you willing to take on the responsibility of caring for your father in your home? A POA can be paid for caregiver duties and rent from the principle's assets if it is carefully drafted into a legal caregiver contract and lease. I would recomment using an elder attorney.
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How is she getting the money? Is she on his accounts or only you? Regardless, if you are POA and acting as POA on dads behalf (he is either incompetent or you have his permission to act financially on his behalf) then get all his monthly checks, dividends etc arranged as direct deposits to his account. Get the post office to forward all his mail to your house. Then give dad and/or sister reasonable weekly allowance for his care. Tell sister you need to pre-authorize any expenses over $100.

She's not going to like it, so be prepared if she no longer wants to take care of dad. Then you will have to consider respite care.

If your sister is considering her time while caregiving as something she wants compensation for then it is your decision as to whether you will pay her for her time. That may be $15-20/hr. Up to you on how this is handled if you have powers under POA.
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