The transfer out of the old trust should be just that; a transfer without any consideration (i.e., not a sale, the property is simply removed from the trust as in distributed to what they are apparently calling the "second trust").
The "second trust" should take a carryover basis from the original trust (i.e., the basis in the "hands" of the "second trust" is the same as that in the original trust).
The forgoing presumes standard language and terms which should be reviewed by professionals who can actually read the terms of the trusts.
