Can anyone help me understand Medicaid legislature?

You really need to find a lawyer familiar with Nebraska medicaid recovery. This new law covers trusts, etc. created after the law was passed in May 2017. If your plan is to utilize Medicaid in the new state (or still in Nebraska), you want to find out if it's best to wait a full 5 years and if the value of parents' life estate will be used in any future Medicaid calculations if you sell the property. Remember that Medicaid requires disclosure of assets under the new law, and the sale of property with life interest will be documented post the passing of new law. None of this is a do-it-yourself project. This requires very specific legal advice.

Thank you.

New property still in Nebraska.

Even though the property is in our name, due to life interest, it will be disclosed to Medicaid?

The 5 year look back on the creation of the life estate won't be finished until December 2, 2017. The state of Nebraska considers life estates an asset for Medicaid purposes. If the sale of home including life estate is rolled into property that is only in YOUR name, that is gifting if done before the 5 year look back is satisfied and your parents apply for Medicaid before then. I'm not sure if the clock on the life estate surrender during the sale will be included in a new 5 year look back from the date that the life estate is sold if you don't return the value of the life estate on the date of sale to parents. This is why creation of life estates and trusts need lawyers when you get ready to dissolve them, sell otherwise exempt assets and/or apply for Medicaid. Please consult a lawyer familiar with the NEW Nebraska rules in case your parents need Medicaid.

Thank you!