Joint life ownership

[wolly]

My mother in law put my husband and his sister as co owners of her home in 1989. She is now living with us as she can no longer live alone. We have sold the house and the money was split three ways. We were tols that for five years if she goes into a nursing home they can take the money from all of us. Is this true? My husband and sister paid taxes on their portion and my mother in law was exempt. Do we have to wait two more years or can we re invest it?