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Has she been formally diagnosed with dementia and declared incompetent? Do you have POA financial and health. if none of those things are in place she certainly has the right to refuse, so like many others you have to wait for the big event to occur when she has no choice because you will refuse to tke her home from the hospital. As you are iving with her and as long as this has been your primary residence for at least 2 years Medicaid will probably allow you to stay in the house as long as you live if that's any consolation. Have you talked to Elder Care in your area. they often have helpful suggestions and certainly know all the rules. An Elder aCare attorney would also be helpful if you can afford that. unfortunately there is no easy solution to your problem and I assume you are not young either.
As many of us had to do, wait for a medical emergency.... where Mom goes to the ER, into the hospital, then into rehab, and finally into Assisted Living if your Mom can budget the cost, or into a Nursing Home being paid by Medicaid.
I had to wait for that to happen with my own Mom :( It was a major fall that forced her to live in long-term-care as she needed a very high skill care. She could no longer make any decisions for herself.
She IS nursing home material-goodness---with the dementia, how can she make a decision for herself that is sound?
Actually, time is going to solve this situation for you. Nobody lives forever.
The big question really is: How much longer can YOU take it? If you quit a job to take care of her, then she is ready for 24/7 care.
There really isn't an answer to this question. I think it all boils down to how much longer YOU can take it. My Mom also has dementia. She lives in her own house still but I go there twice a day for pill dispensing. I too am at the end of my rope. I'm just waiting for a fall. The other day she cut right thru the box of Velveeta and ate a chunk! Maybe this comment will bump this question up and you will get a "real" answer! Hang in there.