Hi and welcome to JA. I am Ray and will be the expert helping you today.
In Arizona what this means is that if the parent applies for medicaid they look back for the last five years and likely deny parent for a prorated time period based on the gift of property.
So you don't have to give it back but he will have to pay private care here for a period of time.A gift made during the "lookback" period, means your parent/applicant will be ineligible for a number of months calculated from the date of application (NOT from the date of the gift). The ineligibility period is determined by dividing the value of the gift by a number intended to approximate the monthly cost of long term care in the community. That figure in Arizona depends on the county of residence and changes each year.
So there is going to be a penalty period here calculated by Arizona medicaid based on the value of the gift, etc.They will notify the parent of this time period.
Your other option is to gift it back here, a life estate
deed may then be possible so parent keeps life estate and then you get it upon their death.Medicaid Estate Recovery cannot get at it because it passes by deed and not probate.
You really need a local NAELA lawyer here.The National Academy of Elder Lawyers can fix this transfer back and then a life estate deed/ladybird deed.
This can be fixed but you need to do it prior to application here or parent will denied for a period because of the gift.
I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again.