It is a bit unclear as to when the home was sold. So, assuming that the home was held in your parent's trust and sold after their death, you could be entitled to what is called "step-up in basis". The step-up in basis provision adjusts the value, or “cost basis,” of an inherited asset (stocks, bonds, real estate, etc.) when it is passed on, after death. This often reduces the capital gains tax owed by the recipient. The cost basis of the property receives a “step-up” to its fair market value at the time of death. This eliminates the capital gain that occurred between the original purchase of the asset and the heir’s acquisition, reducing the heir’s tax liability, as the gain is now calculated based on step-up basis at time of death and sale price. Any capital gains tax would be assessed regardless of whether the proceeds were issued to you, or transferred to your trust.
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