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If this is a Medicaid question, like FreqFlyer wrote you need an atty review.

But if not Medicaid related, Why is the property ownership as a trust an issue? Trusts have advantages. But property in a trust can have issues with getting used for collateral or equity based lending. Banks usually won’t lend to a trust. If that’s what your up against, what is the institution suggesting?
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DDavis, is this in regard to future Medicaid? You would need to check with an Elder Law Attorney or whomever drew up the Trust. I don't know if the clock starts to run again if the house goes from the Trust over to you, as I assume it is a Revocable Trust with your Mom as the Trustee.

Is the plan for your Mom [per your profile] to transfer the house deed to you? I can understand why your Mom would like that to happen, so that you now would have the house.

Here is a major draw back of transferring a Deed from parent to grown child with or without a Trust.... Capital Gain Taxes. When the time comes for you to sell the house, your Capital Gain Taxes will be based on what Mom had paid for the house many years ago. And if Mom had held onto that house for a very long time, there would be a huge profit. Uncle Sam would like a share of that profit.

Now, if the house is left to you in a Will, then the Capital Gain Taxes are far less, as the tax base now becomes the market value of the house on the date of death of your Mom.
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