Does the state come in and take all possessions to pay off nursing home debt? We are spending some money we filed on for aid--will I have to pay this back?

My Mother passed April 7th 2012 in nursing home. We filed for state aid. She was there almost 2 years. How do I find out what happens when my dad passes on or has to go to home? I am power of attorney and living with him. Does the state come in and take all possessions to pay debt off? We are spending some money we filed on for aid--will I have to pay this back? Please help me. My father is in denial.