It is possible that she will need to sell the home for nursing home care. It is also possible that benefits can be denied or delayed by the mother's actions. There is a look back period of 5 years to determine whether assets have been liquidated. None of this will affect the son that received a gift from his mother. It can have dire consequences on the son's mother.
This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.
A loan agreement or obligation for funds would be an asset that the nursing facility or agency would go after. They could force payment by the son to the facility. The note is effectively assigned to the agency caring for the mother.
The transaction between mother and son is totally legal and legitimate. The consequences affect the mother more than the son.
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