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If dad created spendthrift trust with a home for son to live in rent free, dad dies, son dies 10 years later. Is the $250k exemption available to the trust?

AJMorris
Level 2
The son was not named as a beneficiary to any assets, the son was only allowed to live rent free in the home.  I can find examples where named beneficiaries, if they lived in the home, would qualify.  Not sure about the son in this case.
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BobKamman
Level 15

Your examples probably involve revocable trusts.  Who got the proceeds from the sale?  I hope the trustee set aside enough for taxes.