1. No, we will not be approaching to continue to compensate for your mom after she is on Medicaid. You are not legally thankful to do so.
2. No, we will not be penalized for holding your mom as a taxation deduction.
3. If your mother’s let payments did not surpass a satisfactory marketplace value of what she perceived in lapse (i.e., she paid a “going rate” for a rental) afterwards she did not make any gifts to your sister and Medicaid can't reprove your mom when she after relates for Medicaid (and your sister will not have to compensate it back).
Article source: http://medicaidsecretsforum.com/showthread.php?tid=931