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Especially if you're not this person's active PoA or legal guardian, this adult should not be in your home and you should not be their caregiver with young children as this is not a sustainable arrangement -- the adult's dementia will only get worse with time.
If caring for a parent, grandparent, aunt, uncle is adversely effecting you or anyone in your household you place the person you are caring for in a facility that will meet their care needs.
Caring for __________ does not mean that YOU personally have to physically care for them.
Caring for them means that you see that they get the care they need based on their current needs.
Caring for them means that you make sure that they get to doctor appointments,
Caring for them means that you see that they have the proper clothing.
Caring for them does not mean you have to
Get sworn at, spit on, hit, kicked, it does not mean that you have to change soiled briefs, change bedding, do laundry.
Who is this person with Dementia to you? Do they live with you, on their own, you live with them?
Young children should not be exposed to someone with Dementia who is like this. They do not understand that its the desease and not the person. If this person lives with you, maybe time to place them. No money then they go on Medicaid for Long-term care.
Ask her doctor if there are any meds this person can take. Your children should be #1.
And God forbid that this person is living in your home with your children, you must immediately start looking into having them removed and placed in the appropriate facility. And until you do, you can have your children stay with a trusted family member of friend, so they don't have to experience this unnecessary trauma.
Does the person with dementia live with you?
How old are the children?
I'd like to know a lot more before I answer.
Maybe an example of the abuse.
There is no excuse for willingly exposing children to abuse.