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If Mom is competent, then she handles her own affairs. POA does not even come in till she is incompetent. I had immediate with my Mom. I felt it was a tool I could use to help her when needed. When she was diagnosed with Dementia, I did not have to worry about having a doctor declare her incompetent. I was able to do what needed to be done.
What are you paying for to keep Mom afloat? Does she still have a house? Maybe time to downsize. Her SS not enough? There is Supplimental Security Insurance that may help her. Your Social Service office can help you there also with resources. Your Office of Aging too.
I tell you, I will never accept POA for another person. I hadn't accepted hers. It was thrown on me without asking. If you find it to be a burden, give it up.
That said, your mother is competent. You are her POA, but you can resign that today with a simple letter of notification to your mother that you resign as her POA. That's all that is required when the principal is competent.
You mother then can appoint another family member or a friend as her POA.
POA doesn't mean that you have to pay for anything, and I am certain you understand that.
As to the state taking over for your mother?
Why in the world would the state "take her over?"
She is competent.
Simply resign your POA and tell your mother you cannot afford to give her more money. If she loses housing or some such she should call Adult Protective Agency or local council on aging. You are not responsible for your mother.
Do not spend a single cent of your money on her care. Her financial issues are not your problem.
Hopefully you’ve not been foolish enough to bring her into your home. That never ends well.