Simply naming someone as beneficiary of a revocable trust does not translate into that person having to report it on the FAFSA. First of all, it’s revocable. You could change it tomorrow. Second, it doesn’t pay out unless you’re dead - which I assume you are not. Your D does not “have” any money, so she cannot borrow against the possibility of inheriting some future amount of money that might not be there.
P.S. I’m guessing the suggestion of the trust is to have something in place so your D doesn’t get a whole bunch of money at a really young age. Don’t forget to revisit your trust when your D is older. It may make sense to change things once she’s old enough to handle the money herself. For example, it may be better to keep the retirement accounts outside the trust, with your D as beneficiary.