My wife is in a nursing home and soon we will have to apply for Medicaid in Wisconsin. I just found out that she is the beneficiary of my late son's 401k, about $70,000. I still live in a home jointly owned by me and my wife. Now could we spend down these proceeds to fix up are house, roof gutters , furnace, burial arrangements. Or, do we just hand this money over to the nursing home and the State of Wisconsin due to the fact she has been residing at the nursing home already?? Is there a internet site that would give me specific information? This is all we will have as far as assets are concerned when she receives the money from the financial firm. Our house only has $8000 in equity and valued at $124,000.