I have a client who passed away in 2017. She had an irrevocable trust with Merrill Lynch. Her daughter is the surviving trustee.
If her daughter sells the stock that is in the trust, is the cost basis the value when the trust was created or the value of the date of death of her mother.

The mother’s house is also in the trust. When the house is sold, the same question is..what is the cost basis of the house? Also will the trust get the 250,000 exclusion that the deceased would have gotten if the house had been in her name?

Thank you for your input.

Dennis Lenner