It may just be a ruse to support the lawsuit to swing in her favor, but she may also be somewhat cash poor if her wealth is tied up in properties and stocks or other equities. Just because she's worth several million doesn't mean that she has that cash sitting in the bank account, though I agree it raises a lot of questions about how she pays monthly obligations then.
I just can't imagine signing over power of attorney and then not seeing that as the clear sign to retire.