what if owner (on medicaid and in nursing home presently) se

My uncle is now on medicaid. After he qualified, we put a lady bird deed in place to 'protect the assets.'
he now thinks he wants to sell the home. Will he/we be penalized and or will the govt take his monies if he sells..what will happen? is it better to not sell the property and also should he have this property in his name only without the lady bird deed? please advise.