<p>It is hiding assests, deliberately and with intent to qualify for assistance that the OP’s daughter would not get if she put HER OWN money in HER OWN account. Not all that different than someone depositing their assets with a family member (ex. “lending” them antiques and jewelry) and then applying for food stamps or declaring bankruptcy. That’s why the federal govenrment has a 5 year look back before allowing someone to have the government take over nursing home payments. </p>
<p>OP said that the money would be available to the daughter - treated as the daughter’s money for all purposes except applying for financial aid. Using daughter’s money to pay daughter’s expenses and then giving daughter spending money out of “mom’s” money is not dissimilar to money laundering.</p>
<p>Americans have long prided ourselves on being self-sufficient and taking pride in our own accomplishments… now it seems to be in how well we can cheat the system.</p>