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Her doctor can give her a dementia test. It's a verbal test that only takes a few minutes. Let the doctor's office know in advance that this is the purpose of the visit.
When your mother fails the test, then she cannot refuse to let someone be her power-of-attorney. The POA can refuse to let her drive, or buy a car (by going to the bank and having Mom's accounts changed to require the POA's signature, and also having Mom's checks re-printed with two names -- her name and the POA's name).
Try to do this before she buys another car. Much less hassle...
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