I have a client who has inherited a home which had been placed into a Revocable Trust by the grantor several years prior to the grantor's death.  Now that the grantor has passed, I am unable to determine whether the basis of the home in the Revocable Trust is stepped up to the FMV at the grantor's date of death, or if the basis is the grantor's basis at the time the home was placed in the Trust.  The fact that the trust was Revocable leads me to believe that it is the FMV at the date of the grantor's death, but I have not been able to find anything that specifically addresses this scenario.

Any direction, references, or assistance will be greatly appreciated.

Thanks very much!

Mike