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The fact that he's seventy isn't promising; but then again it depends on how well set up he is to take care of his mother when the time comes. Has he thought this through? Is there a good facility near him, where his mother might settle? Or is her living with him a realistic prospect? What does he have in the way of resources - money, health and care services, family back-up?
Since he hasn't been involved in her care and probably doesn't have a clue, what isn't realistic is to suppose that he'll just turn up with a removal van and cart your stepmother and all her belongings away. But, again, it's good that you're on good terms with him - you can use your experience and knowledge of her care needs to help him make a practical plan. Think positive! - if he really does intend to do this, he'll benefit from your support.
And if, God forbid, it's just an airy-fairy notion that actually he never imagined would come to pass, then at least you'll know where you stand. And you and he can talk about what is to be done, then, making it clear that he has primary responsibility for *his* mother's welfare and you don't.
You can refuse to continue to care for her, but you can't require a particular person to do it instead.
What does hospice say about step-mom's prognosis? Is she actively dying? If she is likely to die within a few months, it might just be easier for everyone if you keep her with you while getting some in-home help. If her son does not come get her the process of removing her is going to be stressful for you, especially since you love her.
However, if her condition has improved since she started on hospice care and it no longer looks like she will die soon, or if you really cannot continue even a few months, I'd call your county human services department and explain the situation. Ask for needs assessment and for them to find a suitable placement for her.
I would not hesitate to apply for Medicaid for her. The "pink card" your get every year states the value of your house for taxation purposes. That is seldom (in my experience anyway) a true reflection of what a house would sell for in a particular market. Was the money from the sale of the home all used for your parents' care?
If you haven't already had a conversation with Medicaid about your parents I would do anyway, even if you don't expect much to come of it. How come they didn't get any money to speak of for their house?