The answer is that your mother can transfer her ownership in one property to another. She would have to use all of the proceeds if she wants to retain current eligibility for Medicaid. If your concern is for her future eligibility, then she would simply have to spend down any funds she retained before becoming eligible for benefits. Your mother's interest in the new property must reflect the amount she pays in. Your mother should not have to pay back for any benefits she may have received in the past when she sells her current house and the joint ownership with you in the new house should be able to be structured so as not to be subject to recovery by Medicaid upon her death. All of that said, this will only work if properly structured. Don't move ahead without consulting with a local elder law attorney.
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