I cared for a lady who decided she did not want to leave her money in the bank in fear of NH or son having the ability to take it from her. Her son has had no involvement in her life for years and she felt he only wanted her money, the NH fear is she was placed in one unwilling and managed to get out on her own. I promised her to keep her in her home as long as possible and help her retrieve her money to help those she felt necessary. I was paid for daily care and was gifted money , but now they want me to be her legal guardian and Medicaid is going to ask what happened.
Your first problem is her paying you without a contract in place if there is none. The other problem is her gifting her money. Did she think you were going to take care of her for the rest of her life? Medicaid only comes into the picture when she either needs in home care or Longterm care. With LTC she will be penalized for gifting her money and not having a contract in place for your services if u didn't have one. Medicaid has a 5 yr look back so if her gifting was within those years, she will be turned.
Are you liable? Was she cognitive? No Dementia. Then I would not see where u could be held liable. If she had Dementia, gifting u as a Caregiver may be questioned. Son would be the one who could question ur motives. Don't think Medicaid cares just that she spent money that could have been used for her care.
I'd call a lawyer if it were me.
Is she going to be able to pay you, going forward, for that level of care?