Mom is fairly well off but over the years has given our sister thousands of dollars, helping her maintain a nice lifestyle. The new car is not a necessity but a luxury. My brother came to me asking what he should do. Our sister claims Mom offered the money to her some months ago.. but with Mom's dementia, there is no way to be sure. My brother is the Power of Attorney. What to do?
What does "fairly well off" translate into in terms of how many years she can afford of in-home care and possibly a dementia care unit. If she is 93 and she has at least 15 years of assets on hand maybe she can give out some gifts now and then. If she is 80 and she has money for 10 years worth of care, then it is very important to conserve her funds for her care.
And here is something else to consider. If it is even remotely possible she would need to apply for Medicaid within five years of giving assets away, there will be a penalty delaying when she would be eligible for Medicaid to pay for a care center.
If you are not familiar with costs, you and/or your brother might want to research what a nice dementia care center costs and what 24 hour in-home care costs, so you really have a sense of what "fairly well off" translates to regarding care for the rest of her life. That should help your brother fulfill his role in making good decisions for Mother.
Good luck to you all! Come back and let us know how this works out. We learn from each other.