Life Estate

Family member is currently in LTC facility with pending MassHealth application.
86 years old
No children.
Never married.
Only asset is house.
No spend-down issues.
Not able to return to home in his community
My community has PACE program

Interested in allowing him to live with us and establish Life Estate interest in our family's home.

Sounds like a great alternative to a MassHealth property lien, as his LTC expenses would eclipse his house value in roughly seven years.

Are there downfalls/negative tax consequences to this approach?

Will a pending MassHealth application disqualify him from receiving PACE services in my community?

Thanks.