The trust needs the adjusted basis of the property in the donor's hands (thus the depreciation worksheet was provided) and the FMV on the date of the gift for future use if and when it gets sold by the trust or beneficiaries.
Now the trust will use the lower value (adj basis or FMV) to start a depreciation schedule all over again using the 27.5 (or 39 year) period as required ... they cannot continue the old depreciation schedule.
