Question on gifting Property

My wife's mother is married to her second husband (of 20 years). They have willed all of their property to my wife. First husband has no claim on property. Her mother is 71 and still working but going to have to retire soon. We are concerned for her financial well-being. We were told by a friend that it may be best if her mother and step father gift the property (no mortgage - is paid off)to her now, with a written contract that they can stay in residence until their deaths, and we will take over the burden of real estate taxes, etc. We are also considering this, as the property has been in her mother's family for over 100 years and she and her mother like it to remain that way. We have a concern that if her mother passes before her step father, he (influenced by his family) may change the will to only leave it to his side of the family.

Property is in Georgia.

The questions are: Is this a good idea? Can it be done with a simple quit-claim deed? Are there large tax liablities for either party? Will this protect them from creditors if they have future finacial problems?

Thanks

Tom

Transferring the home now has a bunch of problems, not the least of which is that the home would be subject to claims of your creditors, that you might die first, and that the property would NOT get a stepped up tax basis at death.

Instead, consider putting the property in a trust that provides a life estate to mother, with the right of her second husband to live there as his principal residence as long as he remains unmarried, for the rest of his life even after her death, and then goes to your wife.