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Also, with no assets and $1,200/mo. of social security, might she be eligible for Medicaid?

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If she is healthy and of sound mind, I would ask her where she wanted to live and see what resources were available to make it happen. Blind people normally do okay in senior communities as long as the elder has life skills needed by blind people. Is she newly blind or has she been blind for a long time?
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In my opinion, no. I think that will make this person depressed and decline physically and mentally. What is the relation for you to this person?
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She might, as long as you can dig up 5 years of financial records to show she did not gift anything away. Call your county office of the aging.
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