Mom is in NH w Alzheimer's and has Medicaid. Teacher retirement fund giving her $7000.00 bonus will put her over $2000 limit. How to spend down?

Prepay her funeral costs?

Does she have a good tilt in space wheelchair with a ROHO seat cushion?

I would see an elder law attorney to see if there is some trust sort of thing that can be salvaged here to use for her own care needs future and ongoing. This amount of money makes that worth it, and hey, will spend a bit of the money DOWN, won't it?

How much does the NH cost to privately pay for her care? $7K might not even cover 1 month in some places. My state (MN) doesn't do pre-paid funerals anymore and I'd be hard pressed to know what to spend $7K on for my MIL in LTC on Medicaid. She has her covid money sitting in her checking account, and it has no where to go, so we use it to fund her Resident's Trust and she gets her hair and nails done every week. But it would take a while for her to use up thousands.

Is her funeral paid for? If so is there anything you want to "upgrade"?