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Is it the fact that you're worried she's going to drain his bank account that's bothering you, or that you think she has loose morals? It's his money to spend as he likes, and you say his mind is clear, so is the real issue a concern that there'll be less of an inheritance when he passes on?
Hopefully, the relationship is nothing. It sounds like he is moving on after losing his wife.
If it makes him happy, why shouldn't he enjoy this woman's company? I don't think it's terrible that he's not going to the cemetery as often as he used to. His wife has been dead for five years, after all.
If he's mentally competent, I'd say stay out of it unless you have a reason to suspect that she's up to no good. Haranguing your FIL about how you suspect she's a gold digger will only make him more determined to keep seeing her.
I know you're not happy about it, and I probably wouldn't be either, if I were in your shoes, but sometimes you have to realize that you need to back off. Going over there whenever you see her approaching might backfire if your FIL gets the idea that the only way to get his family off his back will be to elope with her to Las Vegas.
Good luck and keep your eyes and ears open.
Good luck.
Age and loneliness can make a person very vulnerable.
Keep an open dialogue with him. Don't be judgmental or he might clam up. And try to determine if she's just being nice (probably not) or if she plans to hit him up for some "help" (likely).
Even if someone had his Power of Attorney, you can't stop him for doing silly things with his money unless you go for guardianship. That's expensive, and may not be at all appropriate.
Best bet . . . keep your eyes open.