I have been taking care of my mom's affairs since we had to quickly sell her home and put her in an assisted living memory care facility.

Who is they? Is she on Medicaid?

If her funds are gone she will be going on Medicaid. She will be allowed what allowance they will be fine with. The rest of the funds will go to her care until she is spent down to very little. This will include the proceeds of the sale of the home if not already spent in her care.

Have you applied for Medicaid on her behalf?

Do you have financial Power of Attorney?