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Hi and welcome to JA. Ray here to help you.
No she will have to go off medicaid and spend down the balance here.She is likely ineligible here for a one month and will have to spend this down for private pay.You need to report this to her medicaid eligibility worker and see if if you need to do spend down.Gifting would be penalized she might be ineligible for medicaid for the penalty period for gifting.
Selling the house here greatly affects her eligibility.It is exempted from resource limits but the minute you sold it here and got funds she has to report this and go off program until she can spend down the funds.You need to be real careful here, contact the worker before you do anything else to see how long she is ineligible.
I appreciate the chance to help you today.Please if you have more questions just ask here, be happy to follow up.Medicaid can be a real minefiled.
No gifts here are allowed under NJ medicaid rules .