Of course, the prospect of protecting one’s property and other financial resources and then going on Medicaid may raise troubling moral and/or legal questions.  The Medicaid program was set up for those who are truly in need.  What your parent may save the taxpayers pay.  Over the long run, unfortunately, these actions destroy the system for those who truly need it.  Furthermore, your parent’s money is for their living expenses not for your inheritance.  Once on public assistance however, this may also mean being provided with inadequate care. 

On the other hand, some argue that wealthier individuals are privy to all kinds of financial wrangling to protect their estates from taxes, so why shouldn't people with smaller estates also have some opportunity to do so on a smaller scale.  Your family will need to be guided by their own moral and political code on these matters. 

At the present time, in many states your parent can protect their assets by giving them out-right to others, or by putting them in an irrevocable trust your parent cannot touch or benefit from, according to current Medicaid law.  But this must be done very early in the game. 

For the most part, when an individual applies for Medicaid, officials usually examine their financial records for the past 36 months to see if any gifts or transfers have been made within that period of time.  Anyone who has been given a substantial gift or have transferred assets during what is usually referred to as a "look back" period may not qualify for Medicaid until sometime into the future.  Usually, the individual must wait for the period of time to pass that would pay for nursing home care equal to the amount that was given away or has been otherwise been transferred.  However, Medicaid attorneys have found ingenious ways to even get around this provision in the Medicaid law.