Gift Tax on Title Transfer

What is the name of your state? pennsylvania

Ten years ago my mother had my two brothers and myself put on the title to her home. She never told us about this and said that is was a $1 transaction. She is considering selling her home and moving to a smaller house and wants my brothers and I to sign the title back to her. My question is was the original transaction of title transfer a gift subject to gift tax on her part? If we sign the title back to her does this represent a gift on our part subject to gift tax? The home is worth about $250,000.

A valid gift requires intent to give, acceptance of the gift, and delivery of the gift. She could argue that she never delivered the gift because she never told you about the deed. (How did she manage to record a deed without your signatures?) You could also argue that you are refusing the gift by signing it back to her, and that this is your first opportunity to refuse the gift, since this is the first you've heard of it. If the IRS buys either argument, there are no gift tax implications for anyone.