@JFW3 agreeing with my colleagues @NCperson and @M-MTax , just want to add :
(a) not knowing the antecedents ( why was the trust created , the actual language etc. ), where we are trying to go is ( and has been quite clearly articulated in section 121 of IRC ) to determine the extent of dominion of your brother ( beneficiary ) over the asset ( either declared at origination or after certain condition such as reaching an age etc. ). To the extent of the dominion over the asset , he is privy to the benefits of gain exclusion etc. This is why we have been going back and forth -- we do not know the extent of dominion.
(b) I agree with @NCperson that while a discussion with an attorney may be advisable but the cost may or may not be worth it for just this purpose ( sale of the asset and recognition of income). The language in the trust should be enough for you to determine the dominion question.
Is there more one of us can do for you ? As always if the question does not lend itself to general interest, you can always PM one of us and keep it reasonably private.
pk
