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Go to an elder law attorney and they can get it straightened out.
but, even before my Mom was incapacitated, her bank made us jump through hoops to get a POA approved.
And even after my Dad's death, I was the executrix and had the death certificate and will in hand, and they gave me a hard time closing his accounts.
I HATE BANKS!
Not again to defend banks but they are there to PROTECT their clients. They do not have POAs for demented patients. And it would be illegal for one to suggest that a demented person sign a new POA. But the bank WILL have its own way of making the account. None of this adding your name to a parent's account as co-owner. That's a no-no.
See an attorney. You Mom's funds can be reimbursed once this is accomplished but it is a bit of a mess in mixed families. And so much more costly and complicated. Any way you look at it this will be a court action; try to go the cheapest way. Any guardianship or conservatorship trumps the POA.
First ditch effort contact the MC where Mom is and tell them. They may be connected with a Social worker. Often they can make a phone call to a judge to get temporary guardianship. And then you would follow through for permanent. They would have better access to MDs.