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If it is you then do what you need to do.
Spend down what needs to be spent as long as it is for her care there should not be a problem.
Contact your local Senior Center, Senior Services or other local agency to determine what help she/you are able to apply for.
But again..she has dementia, she can not make sound decisions for her safety and care you need to make those decisions for her.
In what shape is your mother? Does she have health issues? Dementia? Other mental issues? Where does she live? If you can be honest with her, she needs to hear that she needs more help than you can offer. If she can’t be reasoned with, you’ll need help. Do you have sibs? A spouse? If neither, a trip with her to speak frankly with her doctor may be necessary.
They recycled long before it was fashionable to do. Nothing in their generation was wasted.
My parents lived through the depression and I think they could never forget it causing them to count every penny.