Most people with elderly family members are somewhat familiar with the general gifting rules under the Medicaid (Title 19) program. Namely, that if you make gifts during the 5 years leading up to a Medicaid application then there is going to be an eligibility problem.
Many people don't realize that there are certain exceptions to that general rule. For example, gifts to a spouse or a disabled child is not a problem. Nor is gifting real estate to a sibling or a caregiver child under certain circumstances.
However, there is an even less known excpetion to the general rule which is specific to Connecticut. Connecticut General Statutes sections 17b-261a(c) and 17b-2610(c) indicate that the State can waive the imposition of a penalty period due to gifting if (1) the applicant currently suffers from dementia and cannot explain the disqualifying gift, (2) the applicant suffered from dementia at the time of the gift, or (3) the applicant "was exploited into making" the gift due to the applicant's dementia at the time of the gift.
Clearly, the biggest obstacle to using this exception is proving, to the State's satisfaction, that the applicant is/was suffering from dementia. But if you have medical records to back it up then this exception to the gifting rule may be available.