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My mother-in-law has some savings that will get her through about 2 to 3 months in a nursing home. I can see the need arising in the future as she is quite elderly and showing signs of dementia. She has no other assets. If she goes to a nursing home and spends down her savings, what happens then? Will they make her leave?

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Your best bet would be to apply for Medicaid immediately. If she is admitted to a facility she will be allowed to stay beyond self-pay if they know she is Medicaid pending.
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