This answer comes from a Missouri prospective. Generally the life tenant gets all income for the property for their life. That would also give them the deductions and depreciation for their life. As to the transfers they may be counted , it will depend on how New York views these funds . It can be claimed that it is like a loan or your mom putting money into her home as opposed to makeing gifts to someone. You need to consult with a New York attorney.
The life tenant is entitled to the rental income. You may want to speak with a Real Estate attorney in your area. Look on Avvo.com under Find-A-Lawyer. Good Luck!
It is includedin the lookbackk and the computation is then made for a period of ineligibility re: a nursing home based upon a formula subtracting the value of the life estate from the value of the home and then divided by the avg. regional monthly cost of a nursing home. The penalty is less because you did the life estate method rather than outright transfer.
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