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My aunt is mentally ill and recently entered a nursing home. We have been estranged from this aunt for 6 years. I am worried they are after us for money. She should be on Medicaid, but we do not know her finances.

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Then tell them exactly that. You have been estranged for years and you do not have the knowledge they seek. Unless she gave your family assets in last five years it should not impact Medicaid. They are required to start with next of kin or whoever they can find. Sorry all of you are going through this.
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