They haven't done it yet, but he is buying it from the trust for the full assessed value. The loss would come from the closing costs, Then the trust will distribute the proceeds to the 4 siblings. Another question has come up. Since the trust is irrevocable, stepped-up basis might not apply, and nobody knows the mother's basis since the parents built the house themselves in the 1950's. It's assessed at $290,000 now.