Our lawyer told me Tuesday that I'm not responsible for my husband's debts when he dies. So any loan, etc. in his name only, I'm not responsible to settle it. That would include a nursing home debt. You might check to see if that's the case where you live. Putting a house in a child's name is not always a good idea. I've heard horror stories about that.
When and how the deed was transferred is very important and key to answering this question correctly. I would find a elder law attorney specializing in Medicaid, pronto. An attorney can advise you on how to protect your assets for the benefit of your children. Ask specifically about spousal impoverishment.
It depends how much your house is worth and if you respond to the notice they send you 6 weeks after someone named on the deed dies. But if he is not on the deed, I don't believe Medicaid can take it. It will be yours.
Transfer the deed to whom ever you would like to benefit from it. If the deed is in your name only there should be no issues. You have to check your states rules bc i know in my state there is a 5 year look back on all assests. Meaning if you transfer today and tmrw you have to go on medicaid/pass away they will take it. But if you transfer today and says nothing happens for another 10 yrs there is no claim to your home and it will go to whom ever you wish. So check your state laws and rules about medicaid and look back times. Hope this helps
On second thoughts, I defer to gladimhere - ask someone who actually knows the answer!