Medicaid and the Lady Bird Deed

Does Medicaid Look at a Lady Bird Deed as a Divestment of Assets?
No.  In general, a patient who gratuitously transfers property to his or her children reserving a life estate, or transfers property into a joint tenancy or tenancy in common is subject to a Medicaid divestment penalty if the transfer occurs within 60 months from the date of the Medicaid application.  A Lady Bird Deed does not transfer ownership of the property at the time it is executed and may be used to avoid the divestment penalty.