She had a massive stroke in June and has been in the hospital, Hospital Care Rehab, and now short term rehab. We're trying to get her into a long term home now while Medicaid is pending because Medicare will no longer pay. She was deemed incompetent to make her own decision so we have to get a conservatorship to deal with her assets. That can take months and we have no way to pay for her care in the meantime and she needs more care than my wife or I could ever give her. She never had a power of attorney or any plans for aging really.
If MIL will never drive again keeping her car makes no sense.
If MIL needs the money from the sale of the car to pay for her care I doubt there would be any legal problems in doing so. (no one is going to say that you took financial advantage of her).
If you sell the car keep meticulous record as to the sale.
I don't know how legally you will be able to sell it without her signature on the title.
If you do sell it as I said keep a record of the sale and it must be sold for Fair Market Value so I would get at minimum 3 estimates as to it's value before you sell it.
The PR needs to know the applicant's info, like SSN, DOB, have access to bank statements, know what other assets they have, and include 3 months worth of medical bills.
Unless your and wife’s cars are in MIL’s name, it’s irrelevant to Medicaid how many cars you have. It’s only what she has that matters for long term care Medicaid.
But you do not need to sell her car in order to get on Medicaid. She is allowed to have one car.
Look up Medicaid rules for your state.