sale of parents house owned by a trust

[odnok]

What is the name of your state? Hawaii

My grandparents owned a house, which was placed in a trust. Both have passed away, and the house is up for sale. Upon the sale, my dad and his siblings will receive the gain. Will this be taxable? If so, are there any ways to avoid the tax?

[abezon]

The gain is the difference between the house's fair market value at the time of your grandparents' deaths & the selling price. This is taxable. You'll need to talk to a tax pro about whether 1/2 the house was stepped up in basis on the first gp's death, or whether the whole house was stepped up on the second gp's death. The answer depends on how the trust was worded.