Transfer of partial interest in home

Your research is correct. I know some attorneys who have used the sale of a small percentage interest to avoid the harsh Medicaid rule that a gift of a small percentage to one child is a gift of 50%, gift to two children is a gift of 2/3, etc. I personally never tested that approach, so you’d have to work with an attorney who has used that successfully or is willing to try that.

Another idea is to have a child PURCHASE an interest in the home, attach a right of survivorship to the child’s purchased interest (in the deed), then have the elder homeowner purchase a Medicaid annuity if necessary to spend down the proceeds of the sale. They would qualify for Medicaid immediately, and upon death the home avoids probate and, assuming the state only seeks estate recovery from probate assets, would also avoid estate recovery.