My mother-in-law passed away this week. Her grantor trust holds title to her 4-flat (full depreciated) building. That's the only asset in the trust. The building is worth probably $500,000 right now. Her taxable estate is just the building - she has no other assets.

Does the trust get a step up to FMV?

Can the trust begin depreciating the stepped-up basis effective with the date of death?