Grantor's personal residence held in living trust.  Grantor dies, and receives basis step up.  There is no gain just losses for selling costs.  My understanding is that it is considered a personal loss and thus no loss in the trust to carryover or pass out. 

I have recently read otherwise, and that it is a capital asset in the trust and thus if sold a few months later would generate a capital loss within the trust.  

Trying to find authority and discussion within CCH and it implies that unless it is converted to a rental within the trust --it would remain a non deductible loss.