Based on what you say, your father's purchase of a life estate in your new home should not be treated as a disqualifying transfer. He lived in the house for more than a year, which is a requirement under new laws. So the only issue should be whether he paid the appropriate amount for his life interest. The amount is determined based on your father's age and the value of the house. Given that this was structured by an elder law attorney, it should fit the requirements. But to be sure, you can go back to the elder law attorney and make certain that the transaction did meet all of the requirements.