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The penality is that Medicaid will not pay until the amount of the gift is first paid to the nursing home for care. If you take her home...the penality stops till she returns to NH care.
The other "gottcha" in this...most nursing homes require some period of private pay first before they accept Medicaid. So...if you bring her home...the NH that will accept her when she returns (if she can ever return) will be Medicaid only are few and poor choice.
There doesn't seem to be a way out except to go to those people who got the gifts and tell them they need return it because of the horrible position they put the elderly in. Don't make accusations or be demanding, just explain to them the horrible life circumstance it has caused. Or, keep her at home till the end. Talk about how those people who got the gifts are going to join together to provide her care into the future.
I guess none of us ever expect that we are going to need lots of money in our old age, and giving some away seems pleasant. I'm sorry that this is creating a financial crisis now. I suggest consulting an Elder Law attorney now to learn the best course of action.
Neither the nursing home nor Medicaid will care who pays for your Aunt's care. But someone must until the penalty period is over. The other option is for family to take care of her until then.