As expected, Mom got denied from Medicaid. When does the clock start on how long she has to wait for the Medicaid penalty to pass?

It's not a time penalty, it's a $$ penalty until the 5 year period is past. If the gift was $20,000 and medicaid cost is $200/day, then you will have to self-pay for 100 days.

Clock usually runs 5 years from the date of LATEST transfer. So if she gives more, the clock resets. 2010 gift penalty to 2015. But if gifting happens in 2014? Clock resets to 2019...you really want to consult a lawyer and have honest discussion about money gifts and transfers that WILL surface during review. Gifting can include transfer of real estate and title on cars, etc. Was she in facility Medicaid pending? Be prepared for a bill for the difference between the share of cost on Medicaid and private pay rates. And if you do not pay, facility can issue 30 day eviction order. Not pretty. Just curious - If you knew there was gifting, why apply for Medicaid?