You need to find an estate planning attorney for your mother to discuss her situation. Depending on other assets, her desires, prior gifts made, and the current state of federal and state estate taxation, some options may be better than others.
The look back period for transfers of property is 5 years so if she needed nursing home coverage in the next 5 years, the house transfer could cause problems. If her nursing home arises after 5 years it might prove to be a wise move.
This answer does not constitute legal advice nor form an attorney client relationship. I am not your lawyer. If you have a legal issue in Tennessee you may contact me for a free consult.
I agree with Attorney Long. I have seen this work before. I have also seen it end in disaster. An attorney can help you try to set this up in such a way that it will work out best for your mother.
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