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Your answer lies in the type of trust you're speaking about
Most of the trusts I work with were revocable, turning irrevocable on the date of death. If this is the kind of trust you have, then yes, the basis is the stepped up basis on the date of death
Your fist step is to find out what kind of trust you are working with..
The trustee or estate attorney should know what kind of trust it is and whether a "step-up" to market value at the date of death (or six months later) is applicable to the trust that is making the distribution.
I hope this helps.
I must leave the forum for a while. I will check back later today, If you still need help please leave your question here so that I can help you when I return to the forum