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We have medical and regular POAHe is on several medications and the dr requested that we take his license but my husband doesn't have the heart to do it. If he has an accident are we responsible?

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Please look at my picture here...where we were too chicken to stop my father from driving and he drove into a bank....a few more feet into the office and he would have killed the loan officer.
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Have the doctor file the appropriate paperwork with the Dept of Motor Vehicles to have your father in laws license revoked. Another option would be to talk with your State Police or the DMV. It's hard to tell a parent that they can no longer drive and it can cause a lot of conflict in some families. Sometimes it's better to get a third party involved, for example the doctor or the police. That way they can be the "heavy " eliminating some of the family conflict.
I would think that if not financially, morally you would be very responsible for letting him continue to drive.
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You may not be legally responsible but having to live with the result of Dad having an accident is a moral responsibility. Driving is a privilege and Dad is no longer able to handle being safe behind the wheel. Save the life of a family and your conscience - take away the keys and get rid of the car. It isn't easy making those adult decisions but it is what it is!
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My husband's doctor took care of contacting the DMV. She told him "I am required to contact them and tell them your diagnosis. They will contact you and revoke your license." And that is what happened. To him, it was the worse part of having dementia. He mourned his sweet little limited edition Mazda for a least a year after I sold it. I didn't have the heart to do it, either, but I did have the good sense and the courage and I did what had to be done.

If there were any way of not putting other people at risk, I would have let him continue to drive. If he killed himself, he died doing something he loved. BUT if he killed or crippled someone else, how could I ever live with that? How could he?

I tried to let him take risks if he understood the consequences. But only risks to himself. Putting others at risk was just not acceptable.

I never even considered the liability angle. But, yes, for him to cause a serious accident would have been financially devastating.
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Since you are aware, and the MD has warned you, you would be found negligent and liable. Yes you can be sued and you would lose the house, your savings and your future. So call the DMV and clear your name.
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If he has to have a POA to look after his life, then he should not be on the road. Your husband lacks courage. Since I am not a lawyer, I can't say whether you would be liable. But even if you were not liable, what about a moral obligation. How you feel if he hit the car carrying a new born baby coming home from the hospital and killed it, a baby that the parents had been trying for, for 5 years. Please don't let him drive anymore. Find the courage to stop him.
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First off, his doctor should have this conversation with him. Second, you hide the keys or disable his car or get rid of it. Yes, you are legally liable and can and will lose your home if he kills or maims someone.
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If your father wrecks, it's his fault, he kills, injures someone, or property damage, you are not liable because you have POA. But you father and his estate, your inheritance, could be subject to lawsuits. Don't screw around with this. Get the keys no matter how much b*tching and yelling. Disable or sell the car.
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Would you ride with him?

If the answer is no, do what it takes to get him off the road. The doctor can make a report to the DMV - FIL can get letters that are not from you or hubby - he may be angry, but better angry than safe than getting his way and dying or killing someone in a wreck...the answer to the question you actually asked is YES, in the USA anyone can sue anyone for anything, and if the facts came out you could end up in a world of hurt legally and financially.

My son was once hit by a driver who probably should not have been driving. Fortunately no serious injury to him, but I was very upset that he did not get the licence and make a police report; we ended up with huge bills over it and knowing that somebody was free to possibly cause a more serious accident later on.

I understand feeling sorry for him. But please print this and show your husband. You may be able to help him do what needs done, it is often harder with your own parent...
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It's not heart your husband is lacking.

If his dad hit your daughter's car head on, would y'all feel responsible? Or is it okay as long as you don't know them? Take away his car or his keys. Doctors don't recommend that lightly.

Brutal answer. Make no mistake. This is your husband's responsibility. Sorry you're reading it. Should be him.
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You just never know what a court of law, would decide. I mean, what if he hits a school bus full of kids or drives through the window of a McDonalds? It isn't the license that will keep him from driving. It is the car. You have to take away every vehicle that he has access to. I suppose that his dad had to make hard decisions, when your husband was a kid. The rolls have just been reversed.

My FIL was very able bodied, but had ALZ. Many times his wife had to call the police to keep him from driving. Once he even got the tractor started.
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