For Medicaid there is a 5 yr lookback on assets/funds - Medicaid can pay for assisted living - however few facilities work with medicaid (or whatever the program is called in your state - in KS it's called HCBS - Home & Community Based Services)  - I'm not fully educated on medicare which kicks in for SNF - skilled nursing facility -- so I do not know the nuances of that -- if there's proof of elder abuse regarding funds I'd guess the local authorities and possibly Medicare/Medicaid could come after the guilty parties.

As long as it is going through the probate process and he has the letter of authority to sign an agreement with you he can do a lease option - I assume you will be paying the mortgage directly?

I established a mgt co S-corp a year in 16 years ago and am glad I did.I did it to have a higher authority to check with, anonymity (no rents or 1099s in my name) and retirement plan options.  

my cousin said that before my aunt died she made her power of attorney and something else giving her authorization to sign on her behalf.

Saying that, there exists a policy in this situation where a tenant is legally authorized to live in a rental while not paying rent.

You should contact the local taxing authority and your lender.

This has nothing to do with your real estate agency position.Look to "net listings" with or without a listing agreement.Each state interprets laws differently, someone in one state should not be advising how a RE commission deals with matters unless they have specific knowledge of that commission or state laws.......maybe they are an attorney authorized to practice in your state. 

We had a 'turnkey' contract to sell it for $2.1m to the housing authority, so that was a good deal.  

http://www.cnbc.com/2015/11/23/rich-dad-poor-dad-author-why-millennials-shouldnt-save.html

Sit down with them awhile and do some detective work, too, like actually call insurers, trash and utilities, mortgage brokers, tax authority, etc...Your calculations will only be as good as the raw numbers (and I find sellers may give rosy estimations sometimes, rounding income up and expenses down)...