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The POA can not "keep" the money that rightfully belongs to the person that they are POA for. The money is to be used for the care, treatment, housing, and other debts that the incapacitated person has.
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They can probably sell the house but the money should go to the person’s care or in their account.
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No, but the POA does put the money safely in an account belonging to the senior, and is responsible for investing, managing that money for the elder using their POA. Normally the POA doesn't "explain" finances to others in the family; in fact they serve as a private fiduciary and SHOULD NOT share information. If you suspect abuse of an elder by their POA take your PROOF to an attorney so that the matter can be investigated, or call APS. Your giving us details might give you a more complete and useful answer. Wishing you the best.
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If the person is on Medicaid, Medicaid stops until the proceeds of the house are spent down. The POA has no right to the proceeds.
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The POA.is not allowed to keep.The money for themself or give any of it to anyone else. Proceeds need to be spent on the card and needs of the owner with dementia.

It not she the person would be ineligible for Medicaid should they need it.
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If the POA document contains a “gift” clause, the POA can at least in theory “gift” to themselves.

I don’t know how a Social Security evaluation would handle that.
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