Complex Trust

[gabjo00]

I am a novice at trusts and personally don't do them often. This is a new client to me.

An irrevocable trust with a home was established in 2002 where the husband and wife lived.  Husband died many years ago, wife continued to live in the home.  In 2020, the wife became ill and needed special care where she was moved out of her home and into a facility.  In 2020, the home was rented and schedule E reported on the trust return (not by me).  In 2021, spouse dies and in 2022, family sells the home in the trust.

My question here is, what options do we have, if any, to reduce/eliminate the cap gains on sale of the home.  I am guessing the trust owns the home at the couple's basis and no step up is available.  I am also guessing there is no home gain exclusion available to the wife. I have not read any trust documents but the trustee (daughter) told me its an irrevocable trust that was set up that way in 2002 to protect the home should the parents have to enter nursing care facilities.