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Does his spouse continue to receive compensation? Veteran has Alzheimer's and in nursing home. Spouse is in family residence. Children of veteran have opened bank account only for veterans use and spouse has no access to income. If veteran is in nursing home would he have received additional income for being in the nursing home? Would his spouse be entitled to any assistance?

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As GardenArtist said, it's best to contact the VA. There are often unique aspects to people's situations that can make a difference in benefits. Also, going through certified veteran's organizations, as she also suggested, is a great idea. There are far too many scammers that want to take veteran's money by offering "help" for a price. Tread carefully if anyone wants money for offering help.
Take care,
Carol
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You may be thinking of the $90 Pension limit for certain nursing home patients who are on Medicaid. If a VA Pension or Death Pension recipient--with no spouse or child--is a patient in a nursing home and has qualified for Medicaid coverage, then the Pension or Death Pension amount cannot exceed $90 per month, after the end of the third full calendar month following the month of admission to a VA-run (VHA) nursing home or starting with eligibility for Medicaid in a private nursing home (after the month of admission). Veterans residing in State-run veterans’ homes are exempt from this $90-per-month limit. Such $90/month payment is not considered income and does not have to be paid to the nursing home, and it is paid in addition to the personal needs allowance.
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This is a complicated question and is best asked by contacting the VA. You could start with the Eligibility Department and ask which department could assist you. You can also contact the American Legion or VFW or other service organization which helps veterans with claims issues, for free.
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Thank you Garden Artist for the info about VFW or American Legion giving free claims assistance. Good to know there is local help available if needed.
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The NH cannot take all of his pension as his spouse you are allowed to keep a certain amount to maintain your living situation. Unless his children are POA for him why are the directing where his pension/ money goes?
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It does not decrease, however you will be using most of it to pay for the home, I am sure.
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You may need a lawyer. I'm assuming the children are not hers. My BIL was a major when he left the AF after 20yrs. His wife told me once, that she will not be entitled to his pension. I did read that something can be set up but it cost the serviceman about $200/$300 a month.
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To answer your qustion. Pensions don't decrease because you are in a home. If you are private pay, then ur income is used for your care. If you spend down to $2000 and apply for medicaid, your SS and pension will revert to the NH and u will be given a small amount of money for personnal things. Some have said $100 more or less but it isn't much.
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Having asked this question of the AZ nursing home coordinator, all funds (including what his military pension is) would be paid to the nursing home and the state would make up the difference because he is not 100% on disability. It all depends on the VA's disability rating based on his "service-connected" disability. I could then get Aid and Attendance to still live in our house. Check with your local VA rep to find out each circumstance. It is good you are not co-mingling accounts.
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They would have had to take out an annuity ( Mil retired) for spouse to receive it but she wouldn't receive it till after the retiree passes. Mil Ret friend in state NH with pension about $4500 per month, spouse was left with $695 out of that to care for home etc. Each state Veterans home rate is different in WV $2400 per month so spouse would keep more of husbands pension.
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