Every dollar given to family, charity or church becomes a penalty. Let's say she gives away $10,000. Medicaid would then refuse to pay for the first $10,000 of her care. As for the property, if it was deeded to children more than five years ago, Medicaid won't go after it. She continues to be a life tenant until her death. So the property won't be sellable until after she dies. That means you continue to pay the upkeep/taxes/utilities out of your pocket, because all of her pension and social security income will go to the nursing home.
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