If proceeds from the sale are quite a lot, she may want to consider doing a Medicaid compliant special needs Trust after she does whatever legit spend down for her needs. Like she does a fully paid preneed funeral & burial policy; get dental work done, new eyeglasses and hearing aids and a better quality walker / wheelchair all of which are not covered by Medicaid or covered at the most minimal.
She cannot gift or pay any reimbursement to you as Medicaid will look upon the $ as gifting by her to you and it causes a transfer penalty onto her Medicaid application.
House that sells for 50k different problem than house sold for 450k.
Absolutely. 5 years look-back is in place in Texas. If there is money from the sale and it can be tracked through state databases - it will show and Medicaid will want to know what the money was used for. Gifting will incur a penalty. And Texas will find it - our state did not accept expanded Medicaid so lists are long and often require waiting for services.
She cannot gift or pay any reimbursement to you as Medicaid will look upon the $ as gifting by her to you and it causes a transfer penalty onto her Medicaid application.
House that sells for 50k different problem than house sold for 450k.