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Larry - your in New Braunfels, correct? Then you are going to deal with TXDADS for your mom's Medicaid application. If it's anything like my mom's was, expect to have to provide for 3 years & 6 mos of all her banking and financials and all pages of her insurance (life, funeral, burial and health) as well as any tax assessor statements in order for Medicaid to approve her. My mom was in IL & had her home before moving to a NH, so it was pretty apparent as to where her income went but nevertheless a detailed history of banking was required. The application is done at the local level initially and the caseworker knows the area. If mom lives in an area viewed as affluent, you should expect a somewhat more intense review of the application (like if you live in 78209) or if mom banks at a more upscale bank (like Frost). If checks are written to a person, you may be asked for documentation as to what the check was for; & if not there expect a transfer penalty on it.

States seems to use a "pattern of spending" algorithm for review. In the Medicaid application you have to provide their awards letters (the letter from SS, retirements that state how much they get each month); info on their home; their old bank statements, etc. so the state knows how much they get annually. So if mom had 100K in the bank 5 years ago, lived with a child and gets 1K a month SS and now is down to 2K, there probably is gifting of funds somewhere as just where did 160K disappear to???? But if the same mom lived in AL @ 4K a month the past 3 years, it could totally make sense that she is down to 2K. Applying for Medicaid gives the state an all access pass to their health & financial history, can't hide funds or try to be cute in check writing. The penalty for fraud is serious for the person doing it and will have your elder ineligible for Medicaid.
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Larry, someone has to pay the bills for your mother's care. If she does not do it, then the taxpayers will have to. If this is with regards to Medicaid, it is hard to fool them. They will wonder where the money went.
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Larry, from another question you wrote, are you trying to hide money from Medicaid? If yes, why?
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Which government agency? Medicaid? IRS, now or after she passes? If the latter, is she actually in the range that her estate would be subject to inheritance tax?

You might get more specific advice if you clarified your mother's intent. Between this and the question about having a check your mother writes to someone endorsed over to you, it's not really clear what the situation is.
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