Talk to your accountant. And consulting with an elder law attorney that knows about trusts and Medicaid regulations would be a good idea. Managing elder's assets has to be done very carefully and in compliance with law.
It depends on what you mean by second home. In the past, if Mom owns two homes, the non-primary house wouldn't be her primary residence, thus there would be higher capital gain taxes since she would be unable to take $250,00 deduction allowed on primary residences.
As Glad had mentioned above, you need to check with a CPA or Accountant to see what are current rules.
As Glad had mentioned above, you need to check with a CPA or Accountant to see what are current rules.