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She is going on her third year in a nursing home in NY State. She is on Medicaid and they take her social security and pension. She gets $50 a month in an account for haircuts, clothes, snacks, etc. - and it has been building up to currently $1000 or more. Someone said Medicaid will seize that personal needs allowance when it gets to $2000. Is this true? If so, I will take some out because there are things I am buying for her out of my own pocket. I was hoping to put that money (if not spending it ) toward eventual funeral costs, as of course she has made no provision for that.

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Your mom's assets need to dtay below $2000. for her to remain eligible for Medicaid. Use her PNA for what she needs in the here and now.
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No, instead they will stop paying the nursing home because she will be over the eligibility limit. Honest. Never go beyond the limit.
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