Purchasing property using a life estate

[Sam M.]

Working on a deal to split my property, have done the leg work of doing surveys, getting the plot plan approved by the city etc. 

My main roadblock is that I need to acquire a city lot from the neighbor and the process of getting a partial reconveyance from her lender is proving to be long and cumbersome. I can wait it out and see where it goes but I started this process in December of last year and we still don’t have approval from her lender

The other option is to buy the whole property from her doing a life estate deal where I take ownership of the property by paying off her mortgage of 80k on a property worth 185k in it’s current condition and letting her live their until she dies or needs long term care. 

Am I at risk for a Medicaid dispute or is she at risk of not qualifying for long term care if she needs it before the 5 year mark?
My realtor says since I’m not family it’s not the same. 🤷🏼‍♂️