I'd also suggest you provide a letter of explanation of your intentions as they may also exempt some restrictions if that becomes necessary.

Check about any transfer tax, but that could be an exemption in estate planning issues.

However, you cannot deduct interest you incurred to produce tax-exempt income.

Our fear is they see the rental properties and are going to try and get ahold of those for damages.I have already looked into the homestead exemption for this state and understandably there is not much that is protected there.

In our area we can get an exemption if it's an historic building and doesn't currently have one.

There is a personal exemption and a standard deduction that will shelter the first $10K or so in income, so everything above that is taxable income.  

She wants to maintain her independence.My concern is that if she were my mom (and we just moved my mom from a house to a subsidized apartment last year) I would want her in some sort of assisted living or at least where a trained medical person could easily check on her.Am I being too much of a worry-wart, does anyone else have a similar experience that can offer some advice? 

They are high here.And as an investor you can't get the homestead exemption which really helps on the school taxes in most places. 

I currently work at a children's hospital as a neurosurgery medical secretary. 

@Jon Holdman  My girl account payable/receivable and customer service in medical supply.