Inheritance of property, then immediately buy out sibling. Is the buyout money taxed as income?

[Park City Utah Real Estate]

Hello everyone, A property is put in a trust, and upon the death of the grantor/trustee, the two siblings now own the property in the now irrevocable trust. If one sibling buys out the other from the property, is the money that the sibling receives taxable, or is it considered part of the trust the property was in and does not get taxed?  Once the buyout happens, does the title name change to the sibling that bought out the other one?

[M-MTax]

Each sibling has a basis in the property upon a sale. If the sibling being bought out receives more than the siblings basis......usually the FMV on the date of death......that sibling has a capital gain.

[Mike9241]

confer with a lawyer because if the trust owns the property. Neither you nor your sibling own the property but are merely beneficiaries of the trust subject to its provisions. The property may have to be distributed out of the trust 

[M-MTax]

confer with a lawyer 

Always a good idea when trusts are involved.