this is really uotside of our area of expertise. THe retiring of the granting trustee creates a gift to the trust. That gift is counted for up to 5 yrs.
Since the original trustee no longer has any control of the funds, then (in principle) the funds no longer belong to the granting trustee. as a caveat, the new trustee can't be married to the GT.
With that said, That would not be how I would handle the process. It seems 'weak'. the proper trust tool is an irrevocable trust. Much stronger at protecting assets. GIfting and half loafing is also not a current, effective strategy.
But, after puttung a strategy into place, you should be asking who set it up or reccommended it, if it will work with all the possible programs.
good luck and welcome,