He has the wrong attorneys — and I’m guessing they are not attorneys, but they are annuity salesmen! Please urge him to stop this process right now. There are elder-law attorneys who are well-versed in what the “community spouse” (the one not needing care) can keep as their own assets. And the state will “look back” for a period of at least 5 years to see if there were assets transferred out of their marital property to enable the ill spouse to qualify for Medicaid.
I suggest he search for a qualified elderlaw attorney at www.NAELA.org — the national academy of elder law attorneys. He can search by location. Do it NOW!!