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My mother recently entered a nursing home. The nursing home is doing the application work. This month her pensions were credited to her bank account. Can she use this money to pay bills? Or will the nursing want this money paid to them?

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NO, the entire SS and pension goes to the nursing home. This is one of those situations where you CAN be sued, if you don't hand it over. You better read those admission documents.
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The money goes to the nursing home.
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The nursing home is doing the application work....

IMCO you should consider having an elder affairs attorney process the application.

Yes "You better read those admission documents. " along with your attorney.
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