We are trying to get our grandmother qualified for Medicaid. Advice?

If you have receipts, act of sale & bank statements that show 50% spent her needs & her care, you & Sissy are good on keeping the re$t. Grannie was smart & lucky in having you two as overseers.

You will need the bank records and receipts showing where the money went. Each owned 1/3 and your Granmother's 1/3 was used for her care, plus some of your money. I would remove your portion of the original sale proceeds and put them into a separate account and leave the original account if that is where your Grandmother's income goes. She can have no more than $2000 in her name in most states. It may also be wise to consult with an Elder Law Attorney who deals with Medicaid on a regular basis since the original transaction took place more than 5 years ago. There are a lot more questions that need to be answered before you file the application some may be unique to your state. Get help from a Professional.

Was the home purchased by the three of you or was it your Grandmothers home that was retitled in all three names?

If the three of you owned the home equally, then I agree that when the proceeds were transferred to a joint bank account, you each were entitled to one-third of the money in the account.

MedicAid only looks back 5 years. Since this sale / transfer of assets was done over 5 yrs ago there shouldn't be any trouble-- 1/3 is granny's, so if more than 1/3 is already spent on her, she got her bills paid from you two (thank goodness). But now she can qualify for M.A. just make sure you have every single receipt!