Q. I'm trying to help a friend who is a 60-year-old cab driver and will have to retire in the next five or 10 years because of health problems. He hopes to qualify for Medicaid at that time but worries he won't because he owns a house worth about $400,000. Is there some way he can transfer ownership to his sons and rent it back? He's worried he'll net only about $70,000 if he sold the home and that this would disappear pretty quickly with his medical bills and rent. He has little in the way of savings or insurance and his wife works only part time.

A. Your friend probably doesn't have anything to worry about if your description is correct.

The state's Medicaid program is set up to pay the medical bills of people who are 65 or over, or those who are certified blind or disabled.

But to qualify, the person must show he doesn't have assets of more than $2,000. The person also must have income that's at or below federal poverty guidelines for Hawai'i. That's roughly about $940 a month for an individual and $1,265 for couples, according to the state Department of Human Services.

As for the house, it's exempted from the tallying of assets, so your friend needn't worry about going through a series of legal steps to qualify for Medicaid, said Michelle Tucker, who is a co-founder of the Honolulu estate planning firm Sterling & Tucker.

She said exempted items for asset-counting purposes include a person's home, their car, wedding rings, life insurance if there is no cash value and burial plan.

The rules are complex and there are instances where the state can place a lien on a home to recover costs. To be certain of their status, your friend and his wife should check with a financial adviser or the state to make sure they are eligible and understand the rules.

The state Med-Quest eligibility offices can be reached at:

O'ahu: 587-3521

East Hawai'i County: 933-0339

West Hawai'i County: 327-4970

Maui: 243-5780

Kaua'i: 241-3575

Moloka'i: 553-1758

Lana'i: 565-7102

Do you have a question about personal finance, taxes or other money matters? Reach Akamai Money columnist Greg Wiles at 525-8088 or gwiles@honoluluadvertiser.com