My mother has a Medicaid income-only trust and her house is owned by this trust. She purchased the house in 1980 for $30,000. It's now worth $400,000. Does she lose the capital gains exemption of $250,000 if the trust sells the house now? Will the trust pay capital gains if the house is sold after her death? Does she get to keep her Star and Veteran’s real estate exemptions even though the house is in the trust?