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Answer: Ask your sister why she is going to sell the house. I would guess it's to help pay for your Dad's care. If not, try to persuade her not to sell. If that doesn't work, you can go to court to stop her. One of the ways would be to obtain guardianship (conservatorship in some states) of your father.
Unfortunately, a will is utterly meaningless until a person dies. It does show intent, but if your father needs money from the sale of the home for his care, that takes priority.
There may be a way around selling, however. Your sister should talk with a certified elder law attorney about alternatives. You can find such attorneys through this website: www.naela.org
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You're going to have to go to court. I suggest that before you do that, send your sister a letter letting her know that you love her, etc., but if she continues to proceed with this idea to sell the house you'll be forced to take legal action to stop her.
Then, as I suggested for your sister, make a one hour appointment with an elder law attorney (http://www.naela.org/). Try to find one in a at least a moderately sized firm that also has real estate and trial attorneys.
One way that you can stop the sale is to file for guardianship of your Dad and revocation of the POA. Another way is to simply ask for injunctive relief stopping the sale. There are probably a few other ways, too.
I think you're on the right track, but try to do what you can to maintain your family relationships. Family is important.
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