"According to the lawyers, it should have a stepped up basis, but I'm not taking that as gospel."

Would this be the same lawyers that took the Daughter's house from 1996 and put it into the Mother's trust in 2004? That seems to be what is reflected in the legal documentation.

"Does this mean the mother gifted the property to the daughter back in 1996"

You stated: "a quitclaim deed from 1996 where the Mom, for consideration paid, grants the daughter the property,"

"and then I guess the daughter put it into a Trust in 2004?"

You stated: "Clients Mother put her house in a Revocable trust in 2004"

Whose trust is this? Not who is the nominee or the beneficiary.