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MassHealth Renewal

My mother is on Masshealth and living in long term nursing home care. She is up for renewal and Masshealth is looking for her share from the sale of her house from me. She has a life estate and that was done in 1994. I sold the house in 2008. When I filled out the original Masshealth form there was no question to where the money was from the house and they knew that I sold the house. I was told that since a life estate is a gift and it would pass out of probate. So how can Masshealth go after that money now and not when I first applied for her on Masshealth? She is on full Masshealth and she had no money when she first applied. So what can we do?

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