Sale of property, need help...

Was your Mom on Medicaid for Long Term Care at the time of the sale? Was she on Medicaid homecare at time of sale? Medicaid for health insurance?

I guess someone was not aware that the proceeds of the house needs to be used before Medicaid will continue with service. What was the money used for? Hopefully for Mom.

It sounds like someone was hiding money. No matter what kind of Medicaid Mom used, there is a yearly report done that the income from the house should have been mentioned. The new acct statement should have been included in the report.

You need to talk to an elder law attorney who knows the Minnesota Medicaid regulations very well.  If the money was not spent for your parent's medical care, then Medicaid most likely will stop paying benefits.  They might even ask for the money to be "paid back" into an account that will be used only for your parent's medical/health care.

I understand how easy it is to think that you can use money from the sale of property for something other than your parent's medical/health care when the parent is very healthy.  Sometimes we don't think of our parents' future and the fact that their health will decline and that they will need some type of health/medical care in the future.  We often think that the future is 5 or 10 years away and that today's decision to sell some property and use it for something other than our parents' health/medical expenses is "NO BIG DEAL".  Unfortunately, our parents' future health is a "BIG DEAL" and we (and our parents) need to plan for the "what ifs" that can occur as a person ages & gets elderly.

I had a friend whose father gave her $10,000 and then 2 years later he went into a nursing home.  She had to pay the $10,000 back to her father so that he could use it to pay his nursing home bills. Since my friend had used some of the money already, she had to cash in a CD and get a loan from her life insurance policy to pay her father back.

I hope that this does not happen to you.  But if you did not use the money from the sale of the property for your parent's medical/health expenses, then unfortunately, you (and your parent) are going to have to face the consequences of not reporting the property sale and not using the money to take care of your parent.

The least you can expect is that the Medicaid payments will stop. To stay in the facility or continue receiving services, the recipient or family will have to self-pay. The state might be able to recover the value of the wrongly paid payments via estate recovery after the recipient or the recipient's spouse dies. The person who applied for Medicaid might be prosecuted for fraud, if it seems likely that the person hid the sale and did not disclose the existence of the account with the intent to commit fraud.
I strongly recommend consulting an elder law attorney so that you can have the best shot at minimizing the ramifications.

You say "it was all spent". If the money was not used for the care of your mother, then her Medicaid ends and as said previously, she will have to pay out of pocket.

Her services will end as the money should have been used for her care. She will have to be private pay. Maybe someone else knows if they try to recover money spent for her care

Your parent will lose their Medicaid eligibility if the money wasn’t spent on their care.