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The Nursing home can help with the Medicaid application. Yes her SS and any pension will go towards her care. Her house will need to be sold if no one can keep it up. It will be an exempt asset for Medicaid. If sold, has to be at Market Value.
Do not sign anything. You may want to consider allowing the State to take over her care. Since she has no money, your Financial POA does mean much.
If the daughter is also not the PoA then she isn't doing anything because she can't, just like you.
I would request the help of a social worker. If your sister is physically immobile but not cognitively impaired, then she still gets to make her own decisions. Has she ever had a cognitive test? This can be discussed with a case manager if she can get one.
DO NOT sign any paperwork on her behalf. It is possible the the NH will eventually take the reins and figure out she needs a legal guardian and Medicaid.
Heck LTC Medicaid was applied (and approved) the same day on a Saturday even, before I left the hospital.
Bernie, never put private info online in this manner. It's very dangerous and could lead to people saying they can do something for you in return for money, and being SCAMMED.
As to your Sister being in the nursing home, that isn't your problem as she is in need of this care as you admit. And you are not her POA. Tell her children that they can apply for medicaid, but do know that Medicaid will NOT leave funds in your sister's accounts for her home, insurane or anything else.
I think that it may be time for you yourself to find your own safe living quarters. This home may now be sold. Reach out to your doctors and ask for Social worker consult to guide you in your own future choices. Be certain that YOU also have a POA to act for you when needed.
I am so sorry. This is the way of aging in our country.
Send the papers to her daughter and bow out of this entire situation.
Sending support your way.
I would also remove your email address from this public site.