If mom uses the funds from the sale of her home to enter a nursing home, would the gift of equity delay her eligibility for Medicaid when the proceeds are gone?

Most likely. There is a five year look back period when people go on Medicaid. Any gifts of substance given within the five years before she goes on Medicaid would be likely be asked for. If she has sufficient funds to live in a nursing home without depleting her other assets, then there wouldn't be a problem. But few people do.

There are attorneys who can help you with this. Some say there are ways around the rules. I'm not an attorney, nor am I an expert on Medicaid rules, so I can't say. I would advise you to seek a professional opinion and to be sure the attorney is well schooled in Medicaid rules. You may want to clear the attorney you choose with the State Bar Association.

Carol