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Anyway, if you are able I would put up a camera system. Put one in her room if you can and though out the house. I'm about to do that because my mom hides things like her purse, the mail and her meds and accuses me of taking them. So for proofs sake I'm having cameras installed this week.
As for the original poster, if you can talk to you Nan. Calmly and ask her if that's what she really believes and explain to her that you would never do that. The burden of proof is on the state however they do have you on camera. I think I would talk to an attorney. but that's just me. I like to be a step ahead. It sucks being accused of stuff...I know from experience. Good luck to you.
Do you have a good recollection of what you withdrew the funds for? If it was groceries, and if you still have slips, those are refutation of your aunt's accusations.
If it was for train fare, do you still have ticket stubs?
If you know who Nan's treating physicians are/were, and which if any of them might have done a competence exam, create a list of those with your other "defense" material file. Get all the documentation you can, even though it's after the fact.
If you keep a diary, start a separate one. Just in case.
Elder abuse is a terrible thing. Stealing from seniors with dementia is the lowest of the low.
The district attorney is going to be able to cctv every time you withdrew money -- which they'll know because of the withdrawal dates on her statements. They'll look at how you are supporting yourself and how you afforded your lifestyle on what you had. They'll want to know, if this was pay for services, whether you evaded taxes by not claiming the money as income.
They'll look at gram and see how she spent the cash you withdrew at her request. They'll want to know how she got around to spend it.
Depending on how much money is involved and the results of their investigation, the DA may or may not prosecute. If you are arrested, ask for an attorney before you answer any questions.