While we can't give a specific answer about New Jersey in particular, it probably follows the customary rule. Generally, your father can spend the $2,000 (or you can spend it on his behalf) any way he likes as long as it is for his own benefit. So, he can pay for cable TV, but he cannot pay for a wedding gift because the wedding gift is for someone else. (The Medicaid agency will not understand that he’s making the gift because it gives him pleasure to do so.)