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I’m not an expert, but I do know that Medicaid does a five year lookback. Updates may qualify as a spend-down, but as the home is no longer in his name, it may be considered as gifting.

Be aware that you cannot “protect” (aka hide) money from Medicaid. You’ll get caught and Medicaid is not forgiving. Dad will be denied. Best to contact an Elder Law Attorney who specializes in Medicaid. Dad’s funds may be better spent on that.
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It may have to do with how the agreement was done. Was it turned over to children with the stipulation that he would continue paying taxes, utilities and upkeep? That he would be allowed to live there till his death.

I agree, you need a medicaid lawyer. Not sure if he can use his money for updates on a house he doesn't own.
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If he has money to help pay for his care, then that is how it should be used.

Taxpayers foot the Medicaid assistance given to people in need, it is unethical to hide money to protect it from being used for his care. One day it may be completely bankrupt because no one wants to pay for required care of themselves or a loved one. Then there will be no aid for the truly needy and the ones that can afford it will be the only ones in a facility with professional care.

Ttruly a sad situation.
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