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See an elder law attorney. Draw up a care plan. Be certain you keep meticulous records and that you claim any rentals, etc. on your taxes. You can also ask for money for food, clothing, whatever else and esp if you are POA. Records must be kept with folders for each expenditure and month tally of amounts in as assets, social security, pension and so on, and amount out as expenses. If your Mom ever needs Medicaid you will have to have proof of all this to prevent them from saying Mom was "gifting" and doesn't qualify for medicaid. The amount of rental should be discussed with your Lawyer. As POA your Mom can pay for your seeing the Lawyer. Rental will vary according to amount of room, what included, where you live, and etc. Good luck.
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Your profile says she is living in your home, so not in a separate property that you own. My mother lives in a house we own and I calculated the property taxes and some utilities. Personally, I don't need to profit from her as a tennant, just cover the expenses of the house until she no longer needs it.

If you are sharing an apartment where there is a lease and pay rent, I'd split that and everything else that is in your lease agreement. I would keep food, supplies and other expenses separately. I make a dated invoice for my mother every month and she pays me with a paper check for the exact amount of the invoice. This is because I'm joint on her checking account and am her financial PoA. It will be important for Medicaid (should she ever need it and trust me, that's highly likely) to see exactly where your mom's money went so they don't interpret it as gifting and thus delay, penalize or disqualify her from getting it.

If she lives in a house you own, you can decide that she pay a percentage of the space she uses based on your mortgage, plus a portion of property taxes, homeowner's insurance, predictable upkeep and repairs (not one-time incidents), and a percentage of utilities, county services, etc.

If you are also providing caregiving to her, this should be made into a written contract where your rate and hours are outlined. This may seem extreme or unnecessarily formal but you will need to have these records, especially if you have siblings who want an accounting of her funds, or for Medicaid to review.

My main advice is to keep very consistent, organized and descriptive notes with dates and info about what the payments or money transactions were for, and also if YOU pay for things for HER needs.
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I think you would be wise to talk to a lawyer well versed in Medicaid. At 89 Mom may need NH care with Medicaid paying. Not sure how this would work if she is not capable of signing a contract but you will need one to prove to Medicaid where her money has gone. And you will need to keep good records.

Why are you choosing to care for Mom? Dementia gets worse. With my Mom I had to dress her, bathe her and toilet her. She was up in the middle of the night. I eventually placed her in an AL were she had socialization and was able to walk the hallways. My house also was not conducive to someone who couldn't do stairs. I have a bi-level.
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