If you’ve read my other posts on Medicaid you know that Medicaid will take your assets after you die to recover the costs of healthcare that were spent on you.

A way to avoid this is to not technically own anything when you die.

Some lawyers recommend putting all your assets into an irrevocable trust to avoid estate recovery, but a trust comes with some downsides.

A simpler and cheaper way to at least get rid of your property is to convey a life estate deed to a loved one or friend.

A life estate deed is just a regular deed. “I convey my property to my son”

Except there’s one small caveat that makes all the difference.

Instead of saying “I convey my property to my son”… You say “I convey my property to my son, but reserve for myself life use”

What does that mean?

It means that you’ve stipulated the house is now owned by your son, however, you get to live there for life. Effectively, the house is still yours.. But legally, it is not.

From the moment you convey it, the clock will start ticking on the 5 year look back… If you pass 5 years, then the house is no longer a countable asset for medicaid purposes.