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You also say that your Mom says that she doesn’t have enough money to make a change.
You can use the proceeds of the sale of her house to finance the move to Assisted Living or Memory Care. In no way do you have to move to her house. You both have lives and jobs.
Read the numerous posts from family members on this site who made what ended up becoming DISASTROUS moves into their parents’ homes.
Rule #2 - do not have her move in with you and your husband.
That narrows your options to a) grit your teeth and see what happens or b) see about having her move to assisted living or memory care. The location could be either in her current area - which might be an easier transition from her - or near you in SD - which may be a harder sell. You don't give us much background on her current level of social activity, independence with ADLs, cooking, transportation etc. so it's hard to know the actual level of "supervision" that she needs.
In an Assisted Living she still maintains control over her "life" and will have access to the phone, QVC, going out with friends and living her life. An Assisted Living place will give you some eyes on her to alert you to further loss of skills and cognition. You could put some safeguards in place like the phone suggested earlier and parental locks for the TV stations she can watch. She may also be much more socially engaged with the activities and not need the social aspect of QVC (which is their total marketing strategy - conversational sell, friendly chat, making you feel like part of a special group. It was designed for lonely women.)
There is not going to be a single final answer in your situation, especially given her age at 86 and you really didn't mention medical issues so I'm assuming it's most dementia and memory so she could live a very long time. If you don't have access to good easy medical care in your location moving her there wouldn't be a good idea as she may end up needing multiple doctors and doctor visits. Where my dad is in assisted living (He's 101+ and I didn't finally get him to move there until he was 97!) they have a doctor that is available there in the facility. She comes every week and you can make an appointment just like at the doctor's office. The nurses will also call her in if they note anything. This is a Godsend and I don't really get involved in the day-to-day, just the follow-up chat with the doctor or nurses. My dad has very few medical problems so I've not needed to deal with things like multiple hospitalizations.
I'd start really evaluating your needs, options, and doing some reasearch on what's available and affordable It's better to be ready to make a decision than have the decision thrust on you at the worst possible time.
If you are your Mom's PoA and she lives with you, I would read your PoA doc to see what is required to activate your authority. It is usually 1 or 2 medical diagnosis of incapacity (cognitive/memory test done by her doctor). Once you satisfy this, you can make decisions for your Mom, whether she likes/agrees with them or not. The caregiving arrangement needs to work for both the giver and receiver.
Teepa Snow has some very informative videos on YouTube. I learned a lot about how to interact with my LOs with dementia so that we had more productive and peace engagement. Learn about therapeutic fibs so help move her care forward.