Once someone decides to apply for Medicaid (Title 19) benefits the payment status at the nursing home becomes "Pending Title 19" (as opposed to, for instance, "private pay"). Unless it becomes "Granted" or "Denied" the application may be pending up to a year. Additional complexity comes from State laws that rules the Medicaid (Medicaid is operated primarily by the states).
Technically, all of the applicant's countable resources should be used to pay for nursing home care. However, through the use of asset protection planning it is possible to gift a portion of the countable assets or convert assets into exempt assets (i.e. prepaid funerals, home or car improvements/ repairs, household contents), or spend some of the assets on routine expenses (real estate taxes, health insurance etc.). Any gift made within 5 years of the Medicaid application will create an automatic period of Medicaid ineligibility based on the amount of the gift.
Federal law requires each state to have Medicaid recover program and a lien will put on the property. If the property will be sold - proceeds should be remitted to Medicaid.
States are prohibited from making estate recoveries by the Federal law in certain circumstances:--During the lifetime of the surviving spouse (no matter where he or she lives). --From a surviving child who is under age 21, or is blind or permanently disabled (according to the SSI/Medicaid definition of "disability"), no matter where he or she lives. --In the case of the former home of the recipient, when a sibling with an equity interest in the home has lived in the home for at least 1 year immediately before the deceased Medicaid recipient was institutionalized and has lawfully resided in the home continuously since the date of the recipient's admission. --In the case of the former home of the recipient, when an adult child has lived in the home for at least 2 years immediately before the deceased Medicaid recipient was institutionalized, has lived there continuously since that time, and can establish to the satisfaction of the State that he or she provided care that may have delayed the recipient's admission to the nursing home or other medical institution.
Unless any above is true - Medicaid will put lien on the property owned by the deceased.
Retired
Taxes, Immigration, Labor law
For your situation - it doesn't matter if the property is transferred into the trust or provided a life estate - as long as transfer would be within 5 years before Medicaid application - the property should be included into countable assets. As that is revocable trust - your mother is considered an owner of the property.
Florida Medicaid allows your mother to keep her house and still get Medicaid while she lives in the house. As she permanently moves to the nursing home - the Medicaid recover program will try to take the property.
see for instance - http://www.floridamedicaid.com/blog.htm