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Answer: In most states, your and your husband’s income and assets should not be included in your mother-in-law’s application for benefits. This is because the definition of “household” only includes a spouse and dependents. So you and your husband are not members of your mother-in-law’s “household” even though she lives with you. However, different state Medicaid programs might interpret this differently, so I would confirm this with your local Medicaid agency.