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Needing to put mom in NH she needs 24hour care .She had a paralyzing stroke 5 yrs ago this June. We have used all her funds to pay for private care at home and now her money has run out. We are paying with our own money but can manage much longer. The NH said she can apply for Medicaid and should be approved as long as she didn't try to hide any money. Which she did not.

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Yes, any gifts or property she gave away within the last 5 years are considered a penalty item by Medicaid. So find 5 years of documents and go over them thoroughly. Include the records for private pay care; if you paid off the books, that can also be a problem. Medicaid wants to see payroll records and / or 1099 forms that relate to caregiving.
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If the gift was made with in the last 5 years it will have to be repaid in order for her to qualify. Also as Pam stated if the caregivers were paid out of her funds there should have been a care contract unless u used an agency.
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