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My grandmother's POA was my mother, who passed at the beginning of January and no other POA was created. My grandmother's dementia recently has gotten worse in the past week, to the point where she is almost non-responsive. What do I need to do to become her POA so we can pay for her assisted living and any medical care?

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At this point, your only option is to petition the probate court to be appointed her guardian and conservator. You will certainly need to hire an attorney to help you with that.
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contact an Eldercare lawyer in your area. Unless a person can agree to you being their POA, I don't believe it will be given to you. They have to make sure the person is cognizant of what is being asked. You may have to see about guardianship. This is a quote from a legal website: "One crucial thing to know is that the person who is the grantor of the power of attorney---in this case, that means the person who is suffering from dementia or Alzheimer’s---must be able to understand what they’re signing. This is to protect from instances of elder abuse, graft, and other crimes. " Hope that helps.
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Also just wanted to mention, if she's suddenly changed becoming non-responsive, she may have a UTI or some other illness (pneumonia etc) This happened with my mother, it took 4 rounds of antibiotics, over a month and finally bringing hospice in to get her infection (UTI) cleared up and unfortunately, she rarely speaks anymore since. That was almost a year ago and other than talking, she's back to 'herself'. I always wonder if they had given her the right antibiotic in the 1st week would I still hear her sweet voice :(
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Non responsive and in Assisted Living? Are you sure it's not Hospice?
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If your grandmother's dementia is severe then she almost certainly no longer has capacity to designate a new POA and probably can't legitimately sign other legal documents. So to manage her financial affairs -- and presumably her living arrangements -- you would have to petition for guardianship.

For medical, most states do have a mechanism in place such that next-of-kin can make or authorize medical decisions, if a person is incapacitated and has no available durable power of attorney for healthcare.

You will probably need an attorney, but you can learn a lot about your options by first contacting caregiver resources, such as your local area agency on aging, Family Caregiver Alliance (look up their website), and also any local non-profits that serve older adults and families. The assisted-living facility staff may also be able to help answer your question, they have probably encountered this situation before. There may also be a social worker available at the doctor's office.

Agree with @helpnga that if her mental status has declined fairly suddenly, she should be checked for causes of delirium, which include UTI, other infections, and much more.

Good luck.
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The POA papers l had arranged to include others in case l am not available. Check the POA docs to see if someone was included in original drafting.
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Contact an odbudsman in your area of league of older Americans they can point u in right direction
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"So you can pay for Assisted Living and any medical care" sounds like you want grandma to apply for Medicaid. The POA ap can be completed by you and signed by grandma with an "X," and it will have to be notarized with photo ID.
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You pull up the ap (application) for POA online, fill it out, have grandma sign it with an "X", get her photo ID, take it to be notarized.
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Llamalover47, I am a notary. I can only notarize a signature that I witness. I can accept an X, from a conscious patient who knows what they are signing. "take it to be notarized" will not get my seal. Ever.
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