If I give my assets to my kids, what happens if they get divorced or die before me?

This is a serious problem and the reason why a good Medicaid qualification plan will use trusts.  The reason to give money to your children is to protect it so it will be accessible by the family if you need it in the future.  Giving your hard-earned assets to your children outright makes those assets subject to every bad thing that can happen to your children.  In addition to divorce there is bankruptcy, lawsuits and your children's own medical bills.  Also, in the event your child dies, the assets may return to you and disqualify you from Medicaid.  Therefore, you should either place some assets into an irrevocable trust that will pay you income, but no principal, or have your children set aside the assets you give to them in an irrevocable trust that they set up.  This provides for centralized management and protection from their problems.  Often a good Medicaid qualification plan will use a combination of these trusts.