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I don't know. It's a stealth trick, but I'm sure Thelma and her husband put a ton into the system, so why can't they get something out of it? Plus, this way she was able to give money to her son without having to deal with those pesky estate taxes, and they were able to avoid the hell of probate.
Elder care is so expensive that a good chunk of her assets would have been liquidated to pay for it. The place where my grandmother stayed for the last year or so of her life was something around $25K a month--that was 10 years ago and in an inexpensive part of the country, so I'm sure it's a lot more now. Luckily, my father and several of his siblings had insurance on her for that sort of thing so it was nothing out of their pockets.
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