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I strongly suggest seeing an eldercare attorney and creating and signing a 'Caregiving Contract'. Get it all straight and out in the open now, you would be surprised at the trouble you can avoid.
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My brother, on behalf of my mom, pays me from Mom's pension. At this point, it is considered a gift because it is less than what she is allowed to give us. She's going to be 95 in a few weeks so we're pretty sure her money will hold out until she passes.

I'm sure others can tell you that you can be self-employed and do the quarterly tax reporting, etc. I don't know anything about it but from what little I've read so far that's the best way to go if there is a chance your MIL will eventually have to be in a nursing home on Medicaid because her funds ran out.
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