I went through this for my brother soon after my mother passed away in 1990. You definately want to have a legal gardian assigned and I will tell you why. As long as there is someone willing to take care of your sister in the years to come, there shouldn't be any problem. But suppose noone is willing or able to take care of your sister some day? You would need to seek support from your state - which your sister is entitled to. However, she needs an advocate - someone willing to fight for what she is entitled to. If you simply turn your sister over to the state, you have no say in the type of care she receives. But, if there is a legal guardian, you do have some say and your sister is still entitled to the same benefits.
After a couple of years pushing for a community living environment for my brother, he is now in what is considered one of the better homes that happens to be in the same town he grew up in. There were attempts by the state to put him elsewhere on three occasions - but after checking the homes out - I wouldn't allow it. If I wasn't a legal guardian - I would not have had any say.
The advocate has to be a fighter. I look at the whole process as unfair because I still find people who don't get the benefits they are entitled to due to "no money in the state budget!"
The process of guardianship is simple. Contact a lawyer in your local town. It is not expensive. Just a process of filing paperwork with the local court. A legal guardian is welcome to give up guardianship at any time - just make sure the person chosen is sincere enough to look out for your sister's best interests!
Good luck.
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