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My mother is in an assisted living facility and needs next level. My Dad is deceased. Facility my Mother is in needs to move her in to the next level of care for progressive dementia middle stage. I have limited funds ie my retirement. She has SS and currently received VA spousal benefit. Are There VA facilities for spouses I am running out of funds.

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We just recently moved my mom with middle stage dementia to a residential care home in a beautiful neighborhood. It was more affordable, much more attention and better care. Her assisted living facility wanted to charge $500/mo just to wheelchair her to and from the dining hall. She now gets home-cooked meals and constant supervision in a much safer environment, though I strongly suggest touring the homes carefully. We hired a geriatric care manager who pinpointed the best ones she recommended.
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If she has too much income to qualify for medicaid long term care, have you looked into establishing a Qualified Income Trust Fund. Mom's income was too high to qualfy for Medicaid but not high enough to continue monthly payments after her investments were depleted. An Elder Care Attorney set it up for her.
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