Your mother may be able to stay on Medicaid and protect the proceeds through a (d)(4)(A) or (d)(4)(C) trust, depending on her age and what’s available in her state. You or her personal injury attorney need to consult with a local attorney who specializes in settlement planning issues. You can find such an attorney on our sister site at www.specialneedsanswers.com.
For more about (d)(4)(A) trusts (in this case also known as a "first-party trust," click here.
For more about (d)(4)(C) trusts (also called "pooled trusts"), click here.