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Covid relief money is not considered income.
Medicaid rules vary by state. You should get your answers from people who live in your Mom's state. I would definitely keep the money in an account for a while.
So the answer to your question, no the State will not come after that money. If you are an only child, its yours. If not split it among your siblings. Its not even enough money to declare on taxes. Its like an inheritance.
The spend down in assets is what Mom was allowed to keep.
The small amount of her SSA was money for her needs.
The stimulus was for her to spend anyway she wanted.
All HER money, her estate.
I know some NH are greedy, thieving, scumbags but, this one doesn't appear to be like that.
I would just sit on it for awhile.