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In Medicaid lingo, that gift of your home causes an uncompensated transfer of assets penalty. The penalty is losing out on coverage for a period of time, based on a formula, equal to the value of the property given away. Unfortunately, your attempt to avoid the loss of your home through giving it away beforehand leads to a loss of Medicaid coverage. Another aspect of the Medicaid rules that can affect your home is Medicaid estate recovery. After your death, the state has the legal right to recover from your probate assets (the assets you owned on