Does putting real estate into my trust affect the step-up in basis?

Generally, a revocable living trust does not eliminate the step-up in basis.

In practical terms, if real estate receives a step-up in basis at death, the new tax basis is generally the fair market value as of the date of death. If heirs sell shortly after death, the taxable gain may be much smaller than if the original purchase price were used.

Tax reporting should always be coordinated with a CPA, but a standard revocable trust usually does not prevent a step-up in basis.

*Reviewed by Estate Planning Attorney Casey Connealy, Partner at Gaughan & Connealy Estate Planning Attorneys on June 23, 2026.