I think this might be a little harsh on the OP. Grandma wanted the OP to have the money. Legally, there is nothing wrong with gifting money. If the gift is greater than 5 years, the legally there is nothing wrong with keeping the money if the donor ends up in a nursing home with the government footing the bill. The OP has not expressed an unwillingness to turn over the money if grandma ends up in a nursing home before the 5 year look-back period expires and, in fact, actually hasn't spent the money. She has expressed a hope that she doesn't have to turn it over, but not an unwillingness to do so.