Mother is a Medicaid patient and stands to inheirit 250,000.00. Can she pass the inheiritance to myself and my two siblings and not be penalized by Medicaid?

If I am not mistaken every state has its own rules. If the person that is "willing" the money to your mother to change will if possible, if not I THINK Medicaid would TAKE all of the funds from her to re-pay what it has spent on her. Not sure, but I think that is how it works. I would not mention this to Medicaid until you have spoken to an Elder Law Attorney. There are several on this site and hopefully they will answer for you.
Blessings
Bridget W