While we can’t give you a definite answer because there may be quirks in Arkansas law we don't know about, here's the general rule: If your parents owned the house as tenants by the entirety or as joint tenants, then the house belongs to your mother free and clear. She can sell the house and use the proceeds as she sees fit. But to be sure, you’ll need to consult with an Arkansas elder law attorney. To find an attorney near you, go here: http://www.elderlawanswers.com/arkansas-elder-law-attorneys.
For information about Medicaid estate recovery, click here.