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I signed her name followed by my name, as her POA. My mom has dementia and is not capable of signing. She is already admitted to the facility.

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You have signed correctly legally. NEVER sign as the responsible party. You sign as POA and you ARE responsible to pay out of her funds. If problems continue you are paid out of POA to see an attorney for legal help.
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Yes you can refuse. Tell them ur only signing as her POA which does not make u personally responsible. As her POA ur guaranteeing the money is there for her care.
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