Transfer Title/ Deed Property in Los Angeles - Tax basis

[David Featherstone]

Hey everyone! My wife and I are looking to buy a live-in flip property (off-market) from her deceased grandfather's trust. While I was speaking with a mortgage broker about rates, he mentioned that since we were related we could have home deeded to us to keep grandpa's tax basis. Does anyone know if we can keep the original tax basis if the family/trust were to deed us the house? Does this work if the house is in a trust?  Would we be able to cash out refinance the property once it was deeded to us to pay the trust? What are the general tax implications to this if we were to go through with it? 

Thanks for all of your help! I love this BP community!