If your mom is next of kin and stands to inherit ( I believe this is the way it works in most states if one dies without a will), then she'll most likely be disqualified from Medicaid until those funds are spent down. I would start out by spending those funds on an eldercare attorney who can advise you on how to wisely spend down. prepaid funeral? Dentures? New clothes and underwear to last for the foreseeable future? You need legal advice.