@JFW3 I get all that, but I am not aware that an irrevocable trust can be a grantor trust. best to consult a lawyer and confirm whether the trust that owns the home meets the definition of a grantor trust or not. It would depend on how the document is written.
On the other hand, is it worth it. You state the capital gain is currently $25k. How much is your brother's income. for most the capital gains rate is 15% ($3750 in this case if no exclusion) and if his total income including the $25k is below $44k, there is no capital gains tax to be paid in any event. You could burn a lot up with lawyers figuring this out.
