We are considering having my daughter sign guardianship papers. How will this affect he medicaid coverage?

Q) My husband and I are considering having my daughter sign guardianship papers for us to be guardians for my grandson. He is currently on Medicaid. If my husband and I end up being guardians for him, even though he will still live with her, can he stay on Medicaid or do I need to put him on my insurance or get other insurance for him?

A) “The guardianship statutes differ widely state by state, and although most states have enacted the Uniform Adult Guardianship and Protective Proceedings Jurisdiction Act, which seeks to provide a mechanism for resolving multi-state jurisdictional disputes when people subject to guardianship migrate, the complicated fabric of substantive guardianship statutes still varies.
Resources A Knotty Issue
The federal law governing the state-by-state management of Medicaid programs, 42 U.S.C. §1396a(a)(17), and the section that controls the extent of resources that a Medicaid applicant or recipient can retain says that the Medicaid program should take into account “only such income and resources as are…available to the applicant or recipient…”

In most states, once an application for guardianship is filed, the person with the alleged incapacities is deemed to no longer have access to his or her resources and income.

The practical implication is that for a resident who is in the throes of applying for Medicaid, a pending guardianship application will force the Medicaid department to review that application as though the resident has no income and resources.

As long as the rest of the Medicaid application is complete, this could be a relatively quick path to Medicaid qualification. The rub, so to speak, occurs once the guardianship application has been resolved.
At that point, the Medicaid department would return to the application and determine from the resources and income of the applicant whether they are indeed eligible for Medicaid coverage under the traditional means-tested approach.” Source: http://www.providermagazine.com/archives/2014_Archives/Pages/0214/Guardianship-And-Medicaid.aspx