There's a 5 year look-back. Any gifts or trust proceeds must be returned if any money is owed to Medicaid (or to even get on Medicaid). Then, they can sue your kids for the remaining balance after your proceeds are gone and you are deceased. The trust or gift would be exempt, I believe, if more than 5 years had elapsed before you apply for Medicaid. These laws are not being used at this time but they are on the books and can legally be enforced.

I wonder if the State tries to collect for itself the Federal portion of the Medicaid payments. That is a tricky one, too.

Filial Responsibility law. Check your state with Google to see if it affects you.

Nasty little bit of law.