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The assets of a person should go to the care of that person. It is not a good idea to try to hide assets in order that the taxpayer pays for a person's health care, and then family inherits what should have paid. The questions will come immediately after the death of the person, and not answering them truthfully is fraud. Not recommended. If you are speaking of YOUNG children living in a home then it is quite likely they would be able to do that until they are grown, with care; but at a time of sale funds would go to medicaid recovery. As with all questions that are complex and dependent on the laws in your own state you should consult a lawyer with questions such as this.
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Nothing you can do once a person is on Medicaid. Even though the house is an exempt asset Medicaid has rules to who can
live in it. A Community Spouse no problem but there is a criteria that needs to be met for someone else to live there. If when the recipient dies the house has not sold a lean will be placed on the house. Again there is criteria that has to be met if a person has been allowed to stay in the home. If they meet the criteria, the lean will still be placed but the person can stay in the home until they die, leave or it sells. Then lean will need to be satisfied.

Sorry, at this point there is no way to "save" the house. The children could buy it but Medicaid requires that be at Market Value.
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You imply that you were deceived into applying for medicaid but realistically what would the alternative have been, since when someone is accepted it is my understanding that they usually require a high level of care?
I have no expertise in how the system works but logic tells me that they only will want to be repaid up to the amount that was spent, so if the person is newly accepted then they could conceivably withdraw from medicaid and the family could repay that amount - but as far as I can see that's really just robbing peter to pay paul.
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