Medicaid estate recovery after dad passes away and mom still on Medicaid in nursing home?

I agree with Pam above, you will need the expert advice of an Elder Law attorney. Remember, every State is different on how it handles Medicaid, and collecting from those who were on Medicaid.

Pam, the statutes say that transfers between spouses are permitted. An elective trust is being set up for my mom's 50% share of the estate.

See an attorney, because a Medicaid patient cannot give things away, even on a quit claim. Only certain types of Trusts are Medicaid compliant. This is one probate proceeding you need an elder law expert for.

Pam, mom quit claimed the house to dad and dad just passed away. In his will, he is setting up an elective trust for mom and so 50% of his assets will go into the trust. The other 50% is distributable to heirs. Still confused about the nature of what Medicaid will do at this point.

YES, Medicaid will still claim her half. In fact look at his Will, because if he left everything to her, the house bounces back into her name. A quit claim only releases HER claim to the house, not anyone else's and certainly not MERP.