As you may remember, we moved my MIL in with us a few years back. She was with us for better than two years before she passed away. Much the same situation-- faulty thought processes, and too far away for us to keep tabs on her, although she had many friends (some of them my husband's ex-girlfriends!) who tried to help, we just felt she couldn't be alone anymore.
To make a long story short, until we sold her house, she kept telling people she was only staying "until she got a little better." When we finally sold the house, we moved most of her possessions in with us, too... and she also would look at things and say, "Was that mine? I don't remember it."
We thought she would be happier with us than in a home, but you know, I don't think she was any happier in our home than she was when we had to put her in a nursing home for a few weeks after a bout of pneumonia. We were able to bring her home again, I was able to take care of her until she passed away, but it was a wearying experience. I think it's about losing their independence that makes it so hard for them, not where you decide to relocate them.
The right thing is sometimes a very hard thing to do, but I'm sure you did what was best for all involved.
Good luck on the distribution process! That, too, is quite a job.
Love and hugs...