While it may depend on your state’s Medicaid agency, the real question is whether you can get them the information they need and have access to her funds to pay her monthly income to the nursing home. If you’re able to accomplish this without being appointed guardian, it shouldn’t be necessary for purposes of Medicaid.
The facility may still want someone to become guardian in order to make health care decisions for your mother-in-law. Your situation is a prime example of why we urge everyone to execute a durable power of attorney and health care directive.
Learn more about guardianship in the following two articles: