Trust and estate law, especially as it relates to grandchildren (potential consequences from Generation Skipping Transfer Taxes), is extremely complex and this is not something you should attempt to do yourself. I would strongly encourage you to contact a local attorney who is experienced in dealing with trusts. There are many ways to terminate the trust, but an improper set-up can result in disastrous tax consequences.
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You may also want to consult an attorney who is familiar with elder law reagrding Medicaid. If your grandmother ever needs to qualify for Medicaid benefits, a property transfer to a revocable trust could negatively effect her. Medicaid looks at all transfers for a five year period prior to application. Best of luck.
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