If My Mother-in-Law Lives with Me, Does Medicaid Count My Income and Assets When Determining Her Eligibility?

In most states, your and your husband’s income and assets should not be included in your mother-in-law’s application for benefits. This is because the definition of “household” only includes a spouse and dependents. So you and your husband are not members of your mother-in-law’s “household” even though she lives with you. However, different state Medicaid programs might interpret this differently, so I would confirm this with your local Medicaid agency.