If the trust is stil revocable after grandpa's death (and
it appears to be) grandma gets the $250,000 exclusion AFTER
the 1/2 step-up at grandpa's death. If it is in a
community property state grandma gets a FULL step-up in
basis and THEN the $250,000 exclusion. ed

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"Casey in Michigan" <caseydblair[at]yahoo.com> wrote:

- quote -

Depends on what state the home is in. If it's in a
community property state, the basis is the value on
Grandpa's date of death. If it's Michigan (which I
understand is not a community property state) the basis is
half of Grandma's original basis plus half the date of death
value.

- quote -

After Grandpa died it may no longer be a single, revocable
trust, but a revocable trust plus one or more irrevocable
trusts.

- quote -

To the extent the home was owned by Grandma's revocable
trust (not a given, get professional help to decide if this
is the case), she may be entitled to the $250,000 exclusion.
If it's all owned by Grandpa's trust that is now
irrevocable, she's not.

Stu

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Helping a friend with a problem (crisis?)

Grandma's revocable trust sold Grandma's home. The home was
transferred to the trust approximately 10 years ago by
Grandma and Grandpa (Grandpa died a year or two ago).

There is some serious money involved and we have no idea
what to use as the basis or whether or not the exclusion is
available as if it were a personal residence (it behaved
that way)

It is a simple, revocable trust. The home was never used as
a rental property - just the residence of the trustee.

Taxable? Excludable? Maybe stepped-up basis?

Thanks
Casey in Michigan

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