Deductions & credits

property contributed to the trust by a grantor does not get stepped up.  but are you sure it's really an irrevocable trust. many have "irrevocable" in their title but under the tax laws, because the grantor still retains certain powers, it's a grantor trust. still no step-up. however, in this case should the grantor die, the trust would become irrevocable and get a step up in the assets.