Medicaid and keeping the home.

I foresee one problem in keeping the home, jsozie. Your wife and you have your own home, so your mother's home is not your primary residence. If your state recovered expenses by taking it, it wouldn't leave you homeless. I would check in to see how your state would handle recovery when a home is not the primary abode of the cg. You may be able to make a claim against the house to cover the value of your cg services. This varies state to state from what I've read.

Medicaid does not take homes away. If the Medicaid recipient sells the house, he or she is expected to use the proceeds for their own care. If they keep the house then when they die the state can recover their costs from the sale of the house.

The exception is when a family member has lived in the house and cared for the recipient for at least two years before the recipient goes into a nursing home. Then the house can be given to the caregiver.

I don't know if your situation would be considered "living in" the house. I think it would be worthwhile to consult an attorney who specializes in Elder Law to find out exactly how this will work in your state.