While qualified dividends are taxed at the long-term capital gains tax rates, capital losses are not used to directly offset qualified dividends, with the exception of the $3,000 all ordinary income allowance (which does include the dividends). You would need to report any capital loss carryover amount on Schedule D to use it in a current or future tax year to offset $3,000 in taxable income or additional capital gains. If you haven't reported the carryover loss, then you essentially would be forfeiting the benefit.
There is an outstanding question of gain/loss on the sale of the home, because the basis in the property to the trust would be its adjusted cost basis and not the FMV at the time of sale. Proceeds - basis = gain/(loss).
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