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The fact that you feel responsible for her after years of abuse is for me at least, an indication that you would benefit from seeing a therapist.
For some reason when parents have a mental decline they take it out on their child. Usually, the one that cares the most and is there for them. They get something in their mind and they don't let go. She may remember something that made her mad at you years ago. Or, she feels you are a threat of taking her independence away.
If you get help, I think you can use Moms money for guardianship. Medicaid I think allows it if she ever needs it.
Look, if your mother is competent on the legal sense, she can make all the bad decisions she likes. It is, in the end, her money.
But if she is threatening legal action against you, I'd stay far, far away from her and keep communication at the holiday/birthday card level.
My husband's mom threatened to call Adult Protective Services because he was, in her view, abusing her (telling her that smoking was exacerbating her copd). That was the day he walked out of her life.