Champ, Thanks for the interest and questions. My mother had a revocable trust, which owned my folks' home after my father passed. The house was transferred to a new (irrevocable) trust in my brother's name upon my mother's death. My brother is the only beneficiary of that Trust. It's not a conservatorship. My brother lived with my parents in the house when they were alive and continued to live in the house after they died. His trust (created when my Mom died) currently owns the house. I found an article online that indicates, "Section 121(d)(9)(C) stipulates that the (residency) exclusion also applies if a trust sells a property where the grantor or the heir uses the home as a primary residence." So say my folks paid $200k for the house; it was worth $275k when my mother passed, and it is now worth $300k. I believe my brother's basis is $275k, and he should get a residency exclusion for a $25k gain if sold at $300k. I was just trying to see if someone in the TT community had experience with this as I'm sure it's not unique.
