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My mother in law has been diagnosed with stage 5 and is becoming harder to deal with..she currently resides with us and still has a car..when should we take her away from the car.. and at what stage should we be looking for residential change for her... we have 2 kids one is only eight..I dont necessarily want him to watch his grandma keep getting worse

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What Pamstegman said. And for God's sake, don't let her drive your children anywhere.
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Stage 5: Moderately severe cognitive decline
(Moderate or mid-stage Alzheimer's disease)
She should not be driving and is a significant hazard to others.
You should be looking at Assisted Living NOW and a Nursing Home LATER
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I remember reading if you take away a car, you have to offer something in return such as you will do all her driving for her if she want to continue living with you. She might agree with that. Set certain places you will take her, don't give her carte blanche, I learned that the hard way with my parents.
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Has she been evaluated by her doctor as to her fitness to drive? Perhaps more importantly, will you allow her to drive your children around? If not, that's your answer, isn't it?
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