Several that I got in touch with wanted 5 years of my mom's bank statements. Why? My mom has messmentia aka dementia and it’s getting to be a bit much on me with no help from my siblings plus with my own ailments, grandchildren, husband and just need some me time.
For LTC Medicaid a 5 yr review of all her financials is pretty standard to provide to the state via the NH to use to determine that she is now impoverished (usually at 2k max in non exempt assets) and that her income is at or below whatever amount your state has set for maximum income for n individual LTC Medicaid applicate. Often a NH tightly reviews the bank statements to determine IF they will accept your mom as a “Medicaid Pending” resident or if she needs to come in at full private pay rate if they notice her impoverishment seems to have large transfers that don’t seem right & may mean gifting issues.
In addition both NH & state will want her 2019 “awards letters”; these are the documents she would have gotten from SSA, & any other retirements or pensions that she gets paid as income either monthly or on a regular basis. The awards letters get sent out like in Nov, 2018 and state to the penny what she will be paid as income starting January, 2019 and what is being deducted from that income. Like MediCARE is deducted from her SS. The income shown on the awards letters are what the NH will require her to have as her monthly copay or SOC (share of cost) less whatever your state has as its PNA (personal needs allowance). Like for TX, the PNA is $60. So if she gets paid $1200 SS a mo and then $500 a mo from late hubs pension, that’s $1700 income. NH should get $1640 copay each month under Medicaid rules for eligibility and she keeps the extra $60. But that’s it for $ for her once she’s Medicaid Pending or on Medicaid.
If her bank statements don't show that she can afford their care, they will expect to be paid by Medicaid.
If she will be needing Medicaid assistance, she will have to show that she has not been giving money away during the last 5 years in order to avoid paying for her own care.
If your mom has substantial net worth, you need to see an Elder Law attorney to arrange her affairs and to make the Medicaid application if it's ever needed. This may seem like one more onerous job, but it will make life way more pleasant for you in the long term. The attorney will be way more helpful in the process than the NH would be.
You might want to consider hiring a geriatric care manager to do all this for her. Unfortunately, it's not inexpensive to grow old and demented. Planning ahead and selection of a good care facility in advance of immediate need makes it better. And, fortunately, Medicaid is available to pay for care if it's needed.