There have been some articles written on the use of "voluntary impoverishment" to get state aid, examining the legality of various techniques used to get on government assistance. In the typical case the money goes to relatives though. If you feel like doing some dense reading about the topic in general, here are a couple that might be kind of relevant:
John A. Miller, Voluntary Impoverishment to Obtain Government Benefits, 13 Cornell J.L. & Pub. Pol'y 81, 92 (2003),
Estate Planning: A Race to the Poorhouse: Should Guardians Have a Duty to Impoverish Their Wards for Asset Protection Purposes Thereby Preserving Assets for Heirs? 34 W. New Eng. L. Rev. 251 (2012)