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Mother in nursing home just sold her mobile home and gifted the sale to kids. Will Medi-Cal look for these funds after her passing?

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The Medicaid application and also renewal asks if a person has sold or given away anything of value for less than its true worth. The signature page also states that you understand the penalties for fraud. A person on Medicaid(Medical) is supposed to report any change in circumstance within 10 days.
Gifting money is called Divestment and that will make her ineligible for Medicaid until she falls back under the asset limit of $2000.00. She must spend the money on herself and her own care.
Consult a Medicaid Planning Attorney if you can afford it, otherwise she needs to get that money back and claim it .
If she is found out, they can demand all the back payments they have made for her and any HMO premiums along with a penalty. Medicaid Fraud is a Criminal Offense.
Good Luck
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Medicaid may not need to wait till she dies to find out either.
If your state does an annual renewal (my mom on TX Medicaid had this), within the form will be ?s on their assets in which you have to list them (yeah the same items needed for the initial application) and denote any change in their status (like they got sold or ceased). The form was required to be submitted to have medicaid continue and with penalty for the person on Medicaid & whomever signed (as DPOA or MPOA) the renewal as well. If you don't tell Medicaid now, you will have to disclose this for the renewal.

Also real property - like houses & land - are documented by local tax assessor and then dovetailed into state database. It's a totally easy matchup by the State to find any sale or transfer of ownership and to the penny.

You need to let Medicaid know of the sale & the amount ASAP to keep this from becoming a much more costly problem. If mom gets ruled ineligible for Medicaid, the state will notify the NH, so NH will have no choice but to go after whomever is indicated as moms DPOA or responsible person for payment & require some sort of contract (& likely a deposit as well) to keep mom at the NH.
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I keep all receipts for the $194 just in case I'm ever questioned. Bank account shows where her SS goes. I write checks for everything doing with her. Anyone investigating will find everything going towards her bills.
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This "filial responsibility" law sounds good. I have heard that medicaid is strict about where prior monies went within a five year window. I use moms SS check for the house bills I'm trying to sell the house. Her very small pension ck, $194 goes to her monthly needs.
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Medicaid payments will stop cold as soon as Medi-Cal finds out what she did. Get the money back or mom will be tossed out of the facility real soon. She has to report the income from the sale to the Medicaid caseworker. The Nursing Home will sue the kids and win, because California has "filial responsibility" laws.
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I think you and siblings need to return proceeds to her estate ASAP. Use those proceeds to allow her "private pay" status for a few months.
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I'm from NJ, is Medi Cal insurance thru the state like Medicaid. If her nursing care is provided by the state then she is not allowed to gift her trailer. It is an asset that the proceeds would be used to offset her care. If she is private pay, will her money run out within the five year window that Medicaid allows. If so, they will take the sale into consideration and she maybe penalized. Someone on the site can probably givevu better info but...I wouldn't spend that money.
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