I am not sure if this will help clear things up, but I pulled the property card from the town hall, the town has the property in the name of the daughter back in 1996.   But the HUD and 1099-s are in the name of the Trust.  

They sent over a quitclaim deed from 1996 where the Mom, for consideration paid, grants the daughter the property, " with Quitclaim covenants. and retained a life estate.  

Somehow it went into a trust in 2004 with the Mom still retaining a life estate.   I am being told that this is a nominee trust.  

The lawyer sent over a warranty deed created at the closing in 2020 , that also  releases the life estate.   This warranty deed also has this verbiage included. 

"Meaning and intending to describe and convey the same premises conveyed to " Daughter's name " , Trustee of the Trust by virtue of a deed dated 8/27/2004 .  This is not the homestead property of the within grantor.   "

Does this mean the  mother gifted the property to the daughter back in 1996 and then I guess the daughter put it into a Trust in 2004?   Mom retained a life estate during all of this.  So the daughter does not receive title until the Mom passes away?    

Per Section 2036(a), the value of the home the daughter inherited should have been included in the mom's gross estate?   So the property get a stepped up basis when Mom passes away in 2020.?    According to the lawyers, it should have a stepped up basis, but I'm not taking that as gospel.