Neither your sister or you should expect to see any of that money if Medicaid is going to be involved in paying for your mother's care. If your sister sells the cabin and then your mother goes into a nursing home supported by Medicaid, Medicaid will look to see if there have been any transfers/infusion of wealth (ie, the sale or transfer of real estate) to avoid that money going to pay for nursing home care. One cannot do that within I believe 2 years of entering a nursing home and applying for Medicaid to care fo her. Don't think your sister can pioneer and expect to live off of the proceeds, whether all or half....it all goes to the nursing home first.
The mother of a friend of my fiancee's went into a nursing home. She had to sell the home first, use of those proceeds first, before Medicaid kicks in. So...family home sells first, $72,000 proceeds.... at $7,000 a month in the nursing home... money disappears like tree limbs in a grinder....via nursing home invoices.... she then is considered impoverished, becomes a ward of the state...voila... no proceeds from the sale of the home for the daughters.
http://dch.georgia.gov/00/channel_title/0,2094,31446711_31945377,00.html is the link for eligibility in Georgia. Looks like asset limit is $2,000 and $24K per year in income for nursing home. If it is for aged, blind, disabled, it appears the income limit is next to nothing ($3,800/yr).
So, as in the example above, she had to spend down her assets before Medicaid kicked in (this is Illinois, but the rules are similar elsewhere).
It is a sucky system. As someone else posted, JWs are notoriously bad about retirement planning. As an ex-JW, I have about $2 in savings, enough to hold open the account and enough in checking and income coming in to pay monthly expenses. I literally am living paycheck to paycheck for the first time in 3 years. Anything happens to me, I have no long term care policy...no retirement, etc. Whatever social security disability pays... if it is there.
Hope your situation works itself out.
Snakes (Rich )
PS.....Thanks Watchtower. I believed you.