@JFW3 be careful of who the owner of the house is. From the way you describe it, the irrevocable trust is the owner of the home- not your brother. he is a beneficiary of the Trust. He did not inherit the residence. The irrevocable trust became the owner per the terms of the revocable trust, right?
please reconfirm the IRC paragraph - I can't find the language you are stating in section 121. Can you please provide a link?
