It is one method by which liberals can eliminate inheritance among the middle class. I believe property is seized by the state rather than the feds.
In California if you reveive Medicaid(welfare) between 55 and 65, Your Assets are ATTACHED!
When my parents both needed care in a nursing home, we looked into what the requirements were for Medicaid payments. The state required that they sign over all their property to the state BEFORE payments would start. The bureaucrat we talked to actually said they would have to sign over their property even before they would even consider if Medicaid would pay. If there was money left over after they passed away, the state would reimburse the estate any amount left over. Note that the state is not very efficient in selling property. I would suspect that the gentleman in the home didn’t even own the property.