Should I redeposit my mothers funds back into her account in order to pay for a prepaid funeral?

Is she on Medicaid? If she is, then you should talk with them about how to set up a pre-paid funeral. If she is not already on Medicaid, talk to and elder law attorney or estate attorney, who knows Medicaid laws. Unless those funds were taken out of her account over five years ago, if she is not on Medicaid not, you could run into trouble. You really should talk to an attorney for guidance.
Carol

You might want to do whatever makes things simple to prove there has been no "gifting" going on, though theoreticaly if the whole thing is trackable it shoudl be OK. I was told I could take reimbursements from my mom's money, but to make sure I could document that the expenses were strictly for her.