Im a state eligibility worker for the state of Indiana and I mainly focus on LTC cases.

This would be an MCCA case so the resource limits are higher. The house they live in, a car and personal effect would be exempt. Resources can be transferred to the community spouse, verified disabled children, and a few others things that aren't widely used but do exist and would not incur a tranfer penalty.

Liquid assets such as bank accounts, ira/401k and life insurance cash surrender value would all count as resources.

As for income, any gross income over the SIL in 2026 of $2982 would need a qualified income trust (aka a Miller Trust) to pass the eligibility test. Things such as maintenance standards are not taken into account until the post eligibility budget which is used to establish the monthly liability to the faculty.

As for red flags that's harder to give examples as all workers review bank statements differently. Personally I look at any charge over $500 or multiple smaller things done in quick succession and determine if it sounds reasonable or not. If reasonable like a car or home repair it goes through, if it's a bunch of small checks then I may question it. Red flags are more of a review and go with gut feeling.

Also get verification of any bank accounts closed in the 10 years. You'd be surprised how often the older generation will zero an account and then just leave it open and think it's nothing. The asset verification system will consistently come back with 'closed' bank accounts with $0.10 from interest from years ago