my sister is currently living with my 80 yr. old mother. She is on the deed of the house, but my mother has Life Time Estate. My brother, sister, and I were the deed holders, but then my brother and I agreed to transfer deed to my sisters name, so that in the event of my mother's death, she would own the home. We also did this with the agreement that since she (my sister) would be living rent free, it would be her responsible to pay all utilities on said property. Now she is wanting to claim my mother as a dependent on her fed. income and state tax return. Can she do this legally? My response to this is "no", as she does not own the residence at this time, even though she is on the deed, my mother "Has Life Time Estate". Not only that, but in fact, it is my sister who at this time is benefitting the most, as she does not pay any rent....just utilities. Does anyone have an answer to this question?