If your mother-in-law is using Medicaid, Medicaid requires you to contribute most of your mother-in-law’s income to her long-term care in the nursing home. She is allowed to keep a small fixed amount of money as a “personal needs allowance” to pay for uncovered medical expenses and for small extras like snacks, subscriptions, and personal products. She must pay the remainder toward her long-term care. You could use that money to set up a burial trust for her. The amount of money that you are allowed to keep each month depends on your state’s rules.