I have several questions concerning a Medicaid Asset Protection Trust.  The trust was established by their attorney with all quit claims deeds established to the Trustee and Beneficiary for both houses described below.

The client has two houses.   One house they personally live in, and one house is rented by their disabled daughter.   

I am moving the Rental house from their personal return to the 1041.  I am disposing of the rental house. Do they have to recapture the prior depreciation as if this house was sold?   What cost basis do I use to set up the rental house on the 1041?   Those are my first two questions.

Concerning their personal house which does not incur any earnings like the rental.  Where and how do I enter the personal house on the 1041 in Proseries?

This Trust is an irrevocable trust with both Grantors still living.   Do I choose complex trust on the 1041 screen?

I appreciate any help you can give for these questions.