My brother and I put my mother's home on the market and it has sold. What should we do with the proceeds?

Joy ask your attorney about a living trust. Your mother's funds will be put under the supervision of a "trustee" (usually a family member.) The funds will no longer be in her control - it will be up to the "trustees" to make decisions about how the funds are dispersed. This way the proceeds of her home are no longer part of her income.
However, that if she should ever need Medicaid assistance there is a "look back" period of 5 years. It is my understanding that in those 5 years they would include the proceeds from her home. After that, they would not.
Also, your mother has to be aware that she is giving up control of those funds under the trust to the trustee. I guess that is why the word "trust" is in there
Good luck.

Whomever took it as though we wanted to spend it you are wrong, how do we keep the money for expences yet not have it hurt her as far as medicaide or medicare? I would neaver take from my mother I only want to help her both financially and emotionally and physically!!!!!

Her home her money, isn't it? The right and smart thing to do is apply the proceeds towards her medical needs and other issues relating to her care instead of figuring out or squabbling about how else to spend it. After she's gone, then you can fight for the bones. ... If your health were declining, wouldn't you want your offspring to do the same?

That decision has to be made within your family, by you and your brother. Only you know what's best and ethical. Do you have a particular concern?