I read somewhere that there is an exemption - her house is only worth $130,000 (when it's repaired) - right now it's probably worth half that with the tree falling on it, the one bathroom not working and all the deferred maintenance that needs to be done on it. Would she be allowed to keep the house and still go on Medicaid?
I'm far from knowledgeable about Medicaid but I do recall reading that there is an exemption for someone living in the house and caring for the elder. But that would mean, I believe, that your son would have to live there and take care of her for the requisite amount of time (2 years, I think).
Hopefully someone more knowledgeable can address the exemption and time requirement.
I certainly understand the issue on change!