@sjrcpa That's right, the deal was "this is a gift but then I'll keep giving you money and we can call it rent, so no one will see through it as just a scheme we invented to, remind me, what was the purpose of all this anyway?  At my age I just follow what you kids tell me.  Why are you paying tax on that money I keep giving you, anyway?"

Yes, the gift is a concern during the clawback period, which might be changed to forever by the time she reaches the current cutoff.  It's a challenge to figure out what they were trying to accomplish here, but more fun to think about how the Law of Unintended Consequences could catch up with them.