If I transfer real property (i.e. my home) into a family (Grantor) trust will my heirs lose the benefit of a stepped up

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To confirm, this trust you plan to create (the grantor's trust) will be revocable, not irrevocable. Is that right?

Thank you for the clarification. Your heirs will get the step-up in the property value because the trust is revocable and remains in the estate of the decedent upon death. Only if the trust was irrevocable would the property not receive a step up.

It should apply in that situation also. For example, at death, any assets owned in an LLC (I know you did not say it was an LLC) will get a step-up in basis for any share owned by the decedent. With a step-up basis rule, any gains are calculated based on the asset's value at the time of death rather than at the time of purchase.

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