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The car is an exempt asset under Medicaid.

BUT if you sell the car, the $ you get from the sale becomes income. Her income needs to be spent on her needs or go towards payment for the NH under Medicaid rules.

Car registration is maintained by the state and the county tax assessor. The sale will eventually come up in the Medicaid system. Personally, I'd contact your mom's Medicaid caseworker and tell them and see what they want you to do. A lot of this will depend on how much the car was sold for and what her asset and income was at the time of application. A few hundred $ might still have your mom under the asset limit but a few thousand $$ will not. Ask.
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