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You may want to talk to your attorney or the legal service to find out what you can do. But at first, you need to find out why she did it this way. Mabye she is trying to make your grandmom qualified for medicaid - that is, take away her money for her so she can get medicaid but still use the money only for your grandmom. (medicaid is for very poor people only.)
But if she is stealing the money, you surely should do something as the family's right.
Good luck!
Nina