All prior depreciation on the property ***BEFORE*** you inherited it, basically evaporates into thin air and just goes away. Yes, just like magic. Poof! Gone! That's because depreciation is based on *YOUR* cost basis, and that cost basis for *you* is the FMV of the property on the date the person *you* inherited it from, passed away. However, your rental was not owned by a living breathing human before you got it. It was owned by a trust.
I would expect you to get a step-up in basis when *YOU* inherited it. But when it comes to trusts, there are many different types of trusts and just as many ways each can be set up. Laws also differ on trusts among the states. I'm not at all knowledgeable on the trust thing which is why I recommend you go with what your attorney says about that.
But regardless, *YOUR* depreciation starts from the date *YOUR* name was placed on the ownership deed of the property, assuming the property has been classified as rental property for every single day your name has been on that deed.
Overall though, the four most powerful words you can say to your attorney is "show me in writing". Make sure it's a bonifide IRS document too, and not what some third party says (such as Cornell University, or TurboTax, or even me for that matter.)
