If my Mother has section 8 (housing assistance) and she doesn't want to lose it. What can I do with her pension now that she has turned 70?

The pension through Motion Picture health and welfare just informed her that she now has to do something with her money. There is a one lump sum of 12 grand and then she will get a monthly payment of $150. If the housing authority finds out then she will lose her assistance. What do we do with the one lump sum of money... put it in an IRA account?? Do we put it in a trust account??? She had always planned on that money for her children after she died. But now we know that won't happen. So because she has to do something with the one lump sum and the monthly payments we are thinking that she will lose her housing assistance and we will have to move. We do not know what to do. I hope someone has an answer or can guide us in the right direction. Thank you Dianesquest