Estate Law Questions? Ask an Estate Lawyer.
Hello, My name is ***** ***** I will assist you today. Please give me a few minutes to write a response and identify any additional resources for you.
I believe you are referring to Texas Medicaid's "clawback" provisions (similar provisions are in other states as well). What this does is it allows the government to recover funds that they actually expend on your behalf to pay for your long term care (so this really isn't a case of the government taking your money, it is you receiving care paid for by the government, and the government being permitted to place a lien against your home which partially compensates taxpayers for the cost of longterm care, which is not collected or enforced until both spouses are no longer living in the home).
BUT, IN RESPONSE TO YOUR QUESTION
It is possible to transfer assets greater than 5 years/60 months prior to the state providing benefits and avoiding this lookback/clawback.
If you want to do this properly (and I highly recommend doing it this way if you hope to avoid the government's reimbursement), I would contact a trusts and estates attorney to help you set up your transfers and establish an appropriate set of testamentary documents (wills or trusts) for each of you (if you are already transferring your real property, you can usually use a simple will to transfer the remainder of your assets).
There is no requirement that the grantee reside in the property.