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The rest home has turned it in to state for fraud, in talking with rest home they told me they would not kick her out. But they have sent a letter to her husband stating they would kick her out. We need some advice.

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Slappers, why does your Mother want YOU to pay for your sister's assistant living care? It's not your fault that your sister's husband used his wife's SS checks for his own use instead of paying the rest home for her care.

Is the rest home being paid now with your sister's SS check since everyone found out what was happening? Have your brother-in-law check with Medicaid to see what he can do regarding the outstanding balance owed.
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They WILL kick her out unless he comes to his senses. Plus they WILL go after him for fraud. So your solution is to make the facility her representative payee and work out a repayment plan for what he owes them. Once you sign the Medicaid agreement, you agree to hand over that check.
A friend of mine got his wife on Medicaid and then decided he was going to sell the house and keep the proceeds. Nope, can't do that either, folks because Medicaid has a lien on her half of everything.
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Don't pay the bill. Cooperate with the nursing home. If you have your mom's Power of Attorney, go to the Social Security office and make them the Payee of your mom's Social Security benefits. In 60 days or so,l they will begin sending the check to them for your mom's care.

If you don't have your mom's Power of Attorney, make arrangements (probably with the nursing home's assistance) to obtain that from her. Get her Healthcare Power of Attorney as well.

Maybe don't be TOO hard on her husband. If he suddenly has to "make it" on just one Social Security check, he may be having a very hard time.
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