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Well...this is interesting. There is two possible ways to read this question...

One, will Medicaid view the original transfer of money from Mom to wife as a gift? Yes, if it was down within 5 years of applying for Medicaid. Unless...wife can show the money was used to pay for Moms needs.

Or

Wife will need to apply for Medicaid in the next few years, will Medicaid see the transfer of that money "back" to mom for moms care as a gift? Yes. Only if the money is paid door wife's care would it not be a gift. Medicaid doesn't care where the money came from....removing it from the countable assets for any non-eligible purpose would be considered a gift
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Not a gift if all of it was used for mom's care. And Medicaid only looks back five years.
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