One takes and spends her money for keeping her and we won't only the best for her. At this point Medicad is impossible due to the fact they have been POA and taken what they need. What is the situation of resigning as POA, what does it take? What then would our legal obligations be. What would we be able to do and what will be there responsibility ? I am finished with the fighting?
I'm sorry for your trouble.
That is what you are actually meant to do. Unless you mean the other POA has been spending money on other things, not on your mother's keep?
I'm a little confused because your profile says that your mother is living at your home. So if you're planning to resign your POA, and your mother is not able to apply for Medicaid, and the other POA has misappropriated your mother's money (which is criminal, by the way)... how is this all going to work? What's your plan for your mother's care?
When there are 2 POAs, they are supposed to BOTH make decisions together. They are supposed to agree on any expenditures, ect. How is it that the other POA made financial decisions independently?
Was your loved living with the other POA? Was this POA providing caregiving? This is not against Medicaid rules, but if there is no contract in place spelling out what is provided and what the cost is, then it would be considered gifting, and would invoke a penalty.
I suggest that you consult an Elder Law attorney (specialty is important!) and learn if there are ways to appeal the Medicaid ruling. It would probably involve proving the Loved One's money was used for her care. You can spend LO's money to see the lawyer.
As for your sister abusing her position, that is a totally separate issue. Although paying herself for your mother's care isn't necessarily wrong it can certainly cause problems if mom needs medicaid and there wasn't a proper contract drawn up and receipts weren't kept.