How will I handle my Dad's primary residents?

More information is needed. What IS the fair market value of the property? What are your father's other assets and what is his income? If he has sufficient resources to pay for his own care for the next five years, you can transfer the property at no price, (your father can give it to you, in other words), and the state would not be able to do anything about it. I would need to know what the $60k represents and why that price was selected. I would also need to know your father's current medical condition. Does he have capacity to enter into this kind of transaction or is he incapacitated? Finally, I would make sure that your father's remaining estate planning is in order.

Since the contemplated sale would impact upon your father's benefits you should consult an attorney to review all of the facts and advise you of the consequences of such a sale for both parties.

You need to see if the house is in a Trust, this will determine what you can do with it. There could be an issue on fair market value, so get several appraisals or use Zillow. Your biggest concern should be the lost of Medicare because of the money he will receive.

So, your Dad is on Medicaid, not Medicare; Medicare only pays for rehabilitation, not long-term care, and Medicare is not needs based. Anyway, document that you are buying the property for fair market value; get the opinion of a realtor on what it would sell for on the open market, if not a full appraisal. If the assessor's value is higher, talk to the assessor about when it was last actually appraised for taxes. Of course, once your Dad sells the property to you, that money will be paid to the state to the extent that he already owes for Medicaid advanced, if any is left, he will be disqualified from Medicaid. Talk to them about prepaying if that's the case. The property may be in trust; you would need a copy of the trust agreement. If your Dad is still trustee he could sell to you, probably you should create and file with the deed a Certification and Memorandum of Trust showing that Dad is the surviving trustee.

Medicare does not care what he does with his assets. Medi-Cal does. Go ahead and buy it. Be sure to check the Trust and make sure you're handling everything in accordance with that.

Generally, when a primary residence of someone who is on Medicaid is sold, the money that the resident gets will disqualify them from Medicaid benefits for some period of time. So if your father sells his house to you and your siblings, he will most likely be disqualified from receiving Medicaid benefits. How long he will be disqualified from Medicaid is hard to say without more information.