Will Medicaid Take Proceeds in Sale of My Mom's House?

Yes, that could happen. The Medicaid agency no doubt has a claim against the house for the cost of the care it paid for your mother. If that cost exceeds the value of the house, then all of the net proceeds after the costs associated with selling the house will be due the state. However, you might seek to make a deal with them. If you and your family will receive nothing, you have little incentive to probate your mother’s estate and deal with the house. The agency may agree to split the proceeds with the family.