We cared for my mother in law at first we would go down to the bronx and stay a week, eventually in late october 2010 she came to live with us in Poughkeepsie NY. She gifted my husband about 20K, we in turn purchased a new hot water heater, paid to reroute our heating system she needed to be 'warm' warm was 75 degrees, us suffocating and our heating bills through the roof. our house being old we had siding put in along with a new roof and of course insulation. we live in a bi level house, my husband and did not care much for heat or how the house looked, but since insulating and putting back the old cedar shakes would have costed more we did the sliding. We installed new windows because she felt 'drafts'.we took care of all her doctor visits and vet visits for her dog who sadly died in March of 2011, she became depressed so we enrolled her in a day program, she loved this very much In May of 2011 rushing to get to her day program she took a fall, she was in the hospital and the doctor reccommeneded ASL. I began looking and found nice clean ones in my area for about 2k a month. My sister in laws guilt kicked in and she wanted Ma (as i call her) out in long island, she applied and being the surviving wife of a vet got in for about 3k a month. Last week she became ill with Pneumonia. she was transferred to a rehab place because she is very weak and the ASL won't let her come back until shes better. Today a "hag" called and told my husband that medicare may ask for the money back, we informed her that our intention was for ma to be with us for the duration of her life, we also told them that she gave us that money as a gift and to use to improve her quality of life. the woman told my husband to prove it. He told her that if she just got to the rehab place medicare covers the cost and then we can revisit the issue. Ma had made my husband give her a copy of the agreement when she gave him the money, it was important that she was not a burden and everyday she'd read what my husband and her signed. My sister in law initially threatened us saying we had no right to take the money actually calling my husband a thief, we informed her that she did NOT want Ma, made thousands of excuses, Me being disabled I felt we can take Ma and just work it out, which of course we did. Our hope was that she would come back to live with us until my sister in law decided she wanted to be a daughter. Being that we can prove the money was a gift it is memorialized in writing and signed by Ma and my husband, being that we wanted her quality of life improved the money was used to update the heating system, she detested going to the doctor in my low slung honda which was paid for in full and I traded the it for a 4 door car so she can be comfortable. Every last cent and alot of our own money was used to care for her. Again we never anticipated her going to a NH or a ASL. the woman at the rehab center said medicaid will force us to pay the money back whether it was a gift or not. I researched alot and it appears that we do not have to give it back, and yes we can prove where the money went. I just wanted to see if I am reading it right, you see in July 2012 I had a brain tumor removed and have a hard time understanding what I read, we filed bankruptcy in 2009, and now we have over 25k in co payments for my surgery. I just want to know if this is going to be a problem for us, and to apologize because sometimes I ask things the wrong way. Yes we can prove the money went to the house and the switching of the car, yes my husband and ma signed on the gifted money, and she wanted to give us more and we said no, can medicaid, medicare make us give money back when it was spent to improve her quality of life? please please I need an answer that I can show my husband, we are already in debt over the MY brain tumor bills and this comes at a time when the stress can bring on seizures all over again. I will greatly appreciate an answer.I'm lost here and my husband is sick over this, Ma was happy here, she wanted to stay with us, my sister in law said "I want my mother in lily white long island" that left me speechless because my family is mixed with hispanic, afro american, dominican, irish and itlaian im lost please help me?