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My new next door neighbor is a DAV who requires dialysis every day. He's about 55-58 years old, I'd say. I found out that prior to his purchase of that house, he'd been waiting to die in a Veteran's home. Well, although he's a bit of a jerk, he's living a good life now. There's a dialysis outpatient place I know he goes to every morning; he's got a woman willing to live with him - although he shouts at her and calls her names a lot, she has a place to live with her little girl whenever she's not in prison. (She wears a lovely ankle monitor!) He's severely overweight, but I'm certain he's getting "certain services" from her that he wasn't getting from the VA. Although I wouldn't want his life, or hers, I believe he's got to be WAY happier than he was in the VA care home. The paramedics have come at least six times in a year, but at least he's free and living a "normal" life. Just sayin'. People have a right to live their best life, even if it's not what we would prefer for them. I met his (normal) older brother and although he's still angry/worried about his brother, he visits and they all barbecue...
I think on this site we are so used to reading of very cognitively compromised people (dementia sufferers) that we forget about all the other folks who have severe problems, yes, but still want to live their own lives on their own terms. Good point.
Not sure what you mean by "legal liability"?
If he is not nearly as independent as he thinks he is, cut back a little on what you're doing for him so maybe he can understand that moving might not be doable.
Also not sure what you want the agency on aging to do?
Could he make arrangements to visit his friends for say, a half day, then every month or whatever is conveneient/affordable/works for his mates too? Something to look forward to.
If you (or no one) is his PoA, then you legally can't do much except not enable his delusions which would ultimately hurt him. You will need guardianship in order to make decisions in his best interests (again, he won't like it one bit). If you/some one doesn't pursue guardianship then the county eventually will and they will manage all his affairs after that point. But getting to this point might mean you will need to be a bystander during a train wreck.
If it were my brother I'd have a conversation with him expressing that I'm happy to help him do X, Y and Z but only if he doesn't make it onerous. This is called a boundary. If you don't have boundaries you will burn out. I know you love your brother but he has no idea that his "dream" will become your nightmare. I wish you much success in getting him to see the reality of his situation.