1 and 2 are essentially none of your business. 3 is idle speculation just as the OP contains speculation as to the motivation for the original trust. None of this pertains to making a decision on the facts at hand.
I am always fascinated by the default position for the protection of capital being “to avoid future care home fees”. The evidence for this tends to be sketchy at best.
What you have to address here is the trust as it is now.
