I have a family member that is on Medicaid. Getting a loan or saving up for a vehicle is nearly impossible given the rules. So, with that in mind, I would like to buy them a car. In most cases they can own a car, but if they sell it, the funds would be treated as income and endanger their Medicaid coverage. I want to purchase a vehicle for them to use, but in a way that would not endanger their coverage or subject me to excess liability.

I am considering a trust of some sort, but it seems like there are some other concerns related to that. For example, I would prefer the insurance and registration be paid directly by them. Another concern, unless the vehicle is "loaned" to them indefinitely, is there any way to legally allow them possession of the vehicle without it legally being considered their personal asset? I thought about just registering the vehicle in my name and "loaning" them the vehicle, but it seems like that would put me legally on the hook for insurance, registration, and liability should anything happen.

Has anyone been in a situation like this before, and/or have any recommendations? Ultimately I will probably be getting a lawyer to set things up, but trying to do some research up front so I have a good idea how to proceed before involving a lawyer.

Check with an Attorney of course.

But this may guide you.
https://www.medicaidplanningassistance.org/question/vehicle-exemptions-from-medicaid-asset-limits/

I'm familiar with the vehicle exemption, which may have to be good enough. One of my concerns is if they have to sell it, or trades it in at some point and ends up with extra capital (countable asset unless spent down). If they never own it, then it's never an issue.