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Crayon, yes your Mom can qualify. A house isn't counted at the time of application and approval.

When were the children's names placed on the Deed? If the names were placed within the 5 year look back, Medicaid could place a lien on the house and obtain all the profits, if any. If the names were placed lets say 6 years ago, then Medicaid would place a lien on your Mother's share of the house.
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Yes.

Medicaid recipients may own a house and a car. These are not counted in the net worth calculations.
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Depends on her status. Is she a Life Tenant? Does the state you live in assign a value to Life Tenant status?
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