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Guardianship is a LEGAL "assignment" and there are LOTS and LOTS of REPORTS that you will be REQUIRED to fill out MONTHLY. You will be responsible for ALL of your friend's finances and paying all of her bills.
Google "Guardianship" for your state and go to the state's website. Look at the "Flowchart" of what has to happen to become a guardian. Look at all of the reports that you will be required to complete. Do you have the time and energy and knowledge to complete these forms? Do you have the money to pay for the lawyer who will be handling your petition for guardianship?
You can try to petition for guardianship without a lawyer--some of the people on this website have. The process of obtaining guardianships is not quick. It can take 3 to 6 months or as long as 2 years. You need to talk with an Elder Care Attorney or an attorney who specializes in guardianships before you begin the petition process.
My wife and I have experience with guardianship and conservatorship of three family members in Idaho and haven't found the reporting requirements to be onerous, but the requirements in your state might be different. The costs of obtaining guardianship are usually paid from the ward's funds and if the ward has no funds, then your state's legal aid organization may assist you, or, as DeeAnna said, it is possible to minimize costs by not having an attorney.
Kudos to you for even considering taking on this responsibility for your friend with dementia. Many "friends" shirk away from those with dementia and very few are willing to take responsibility for overseeing their well-being. Best wishes