Purchase and subsequent transfer of property.

I would like to sell my rental property to its current occupant (my mother-in-law). Once sold I would prefer the ownership of the property be conveyed to her son via a quitclaim. She is currentlty 90 years old and, although very intelectually capable now, she may at some point need to go to some sort of 24 hour care facility. She has resources to pay for that sort of care on the short term but at some point may need to avail herself of Medicaid. In Texas, if the recipient of care has property, the State can take ownership to defray the costs incurred for such care. If her son has clear title to the property the State cannot take the property away and he can then dispose of the property and use the reciepts to continue her care on our terms rather than the States. This is our plan. My question is, " can the Federal Government charge gift taxes on the total value of the transferred property or is the property transferred to my brother-in-law free of gift taxes".

Thanks and regards,

Robert Blake