<p>I think colleges will look closely at a situation like this because it doesn't make much sense for grandma to have gifted you all of her money at once. You can only gift an individual $12K/yr, and that's now. Grandmas's planning should have assumed she would need care in the future. Frankly, it soulds like another attempt to hide money. </p>
<p>If she indeed gifted you the money, it's yours in the eyes of colleges. Her future care won't be considered. They will consider it if she has large bills for her care now.</p>