Am I paying capital gains on inheritance, or on a gift?

[Chad Walker]

Hi everyone,

My wife's father passed away in 2000.  His 90 acre farm was put into a trust with his current wife as the trustee.  At the time of her death, the trust would transfer to my wife and her sister.  Due to family friction she chose to transfer the farm to my wife and her sister and the trust was dissolved.  This was two years ago.  My question is, if we sell the land, will capital gains be based on the land value at the time the trust was created (2000) as inheritance, or will it be calculated from the time the property was handed over to my wife and sister (2015)?    I hope this makes sense.  Any help or advice would be greatly appreciated.

Thanks guys!