The problem with revocable trusts for this purpose is that they are revocable: they can be revoked or undone at will, so that the property comes back to its original owner. That degree of control over the asset means that it is effectively (for all practical purposes) their property, and so it is counted against them.It may not be possible to change it to an irrevocable trust or remove it fro the trust right now, since there is a five-year "lookback" period for transfers of assets (changing ownership): if the house is removed from the revocable trust without paying the trust the current fair market value for the house, that will be considered a transfer made to defraud Medicaid if she needs Medicaid within 5 years of the transaction. Making adjustments to asset/property ownership to try to protect them from Medicaid needs to be done in advance, more than five years before you need Medicaid. Otherwise, if done within five years of needing Medicaid, non-fair-market value transfers will typically be deemed fraudulent.While it's worthwhile to consult with an estate planner to see if there is some way to keep the house while qualifying for Medicaid, there might not be: you may need to sell the house, spend the money from it for her medical or assisted living care, then have her go on Medicaid when all but her last $2,000 is used up.