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His sister (my mom) has lived with him for 40 years and the last 4 years was his caregiver. He has $9K in savings and gets $800 in SS per month, I'd prefer he spend some of that toward my mom's funeral expenses versus having the NH take away all his savings.

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I don't think the SSA rules would accept his spending down on your mom's expenses. She's not a dependent. The money has to benefit the recipient. Check with the Social Security Administration to see what is acceptable.
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To clarify, it is your Uncle who is applying for Medicaid? If yes, your Uncle cannot use his money to pay toward your Mom's or anyone's future funeral expenses. He can use the money to pay for his own pre-paid funeral expenses.
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Yes my uncle is renewing his Medicaid for long term care at the NH.
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