My grandmother is in a nursing home. I took some of her money to pay bills last year. I now have to pay it back for her to be eligible for Medicaid.

New York does impose a transfer of asset penalty for Medicaid coverage of nursing home care.; There are some exceptions. You can return a gift and show the money has been spent down by the applicant. Also you can show the money was transferred exclusively for purposes other than to qualify for Medicaid. This is difficult to prove, but perhaps something like the funeral expense would qualify.; Also there are hardship provisions, when the funds were taken and the applicant cannot get them back.; As an agent under a power of attorney you did have a duty to your grandmother and the nursing home could possibly sue you regarding the bill. They would have to show you exactly what is owed.; These are all complex issues and you should consult an elder law attorney in your area.