When my mom went into the nursing home with dementia and physical problems, I cleaned out her apartment and disposed, donated and kept some of her belongings (furniture, clothing, knickknacks, kitchen materials such as dishes. etc). The only material things she has now are her clothes and photos of loved ones that are near her bed. No home. No car. The only finances she has are her checking account that also has my name on it. I am POA. When social security and her pension are handed over to the nursing home each month, she has maybe $ 200 left to play with (the $ 50 allowed plus money I put in to keep the account active). Is her bank account then transferable to me? Does that remaining money go to Medicaid?
This is not co-mingling money. This is perfectly logical. That $50 is Moms money. Medicaid will not require you to give it back. Just make sure that account never goes higher than the amount Medicaid does allow after spending down. In my state its 2k. So make sure that $50 gets spent on Mom. When she passes, since ur on the acct, that money will probably pass to you. Check with your bank about that.
Medicaid will try to recoup, its the law. A letter will eventually be sent to you. (I was told Medicaid contacts the NH and they send back the info on the person of record who took care of the person's finances) And that could be a while. It will ask if Mom had any assets. Your Mom has none and you cannot be held responsible for the money Medicaid put out for her care. So, it will be cut and dry for you.
In my situation Mom had a house. That was sold after her death. She was only on Medicaid for 5 months. I was able to pay off the 6k Mom owed.
If her facility has a Resident Trust you can put funds in there for her use (salon care, gift shop). This can be from your funds if you want. You will need to check with the facility about what their policy is regarding what happens with those funds when she passes. Medicaid can't touch those funds ever, but there is a max amount that can be in the trust. I think it's $250 at my MIL's place.
If your mother does not have a pre-paid funeral set up, I would concentrate on doing that. Medicaid will allow $1500 for that of her own savings. Otherwise a non-prepaid funeral will need to come out of someone else's pocket. I wish you peace in your heart and wisdom as you go on this journey with your mom!