Legal Question in Elder Law in Arizona

You should explore the benefits that Mom would be entitled to receive under Arizona's Long Term Care System. This is the state system to take care of those who don't have sufficient assets or income. It sounds to me like Mom would be better off in a group home setting paid for by the state. You may be able to find a residence that will keep her and accept what the state pays them, after she has been a resident "on private pay" for 6 months or more. Ask the residence what they do when a client runs out of money.

This sounds like financial exploitation of a vulnerable adult. If the daughter passes the test of being in a position of trust and confidence to your mother at the time of the loan, and if she by intimidation or deception knowingly took control of your mothers' assets with the intent to permanently deprive your mother of the assets, your mother or you can file a lawsuit against the daughter. The daughter would have to prove that she did not do that. If you win, the daughter would be subject to damages of up to three times the amount of your mother's monetary damages. I suggest your talk with an attorney. Possibly a letter threatening such a lawsuit might be enough to convince the daughter to make monthly repayments to your mother.