tranquility
Senior Member
The filing or recording of the quit claim is only relevant if another is making a claim against the property. It is the delivery and acceptance of the deed which is determative.
Either the deed (and gift) was properly delivered and accepted, or it was not. If it was, sister has sole ownership of the property and takes the mother's basis. If it was not, mother's estate has the property and will distribute it with a stepped-up basis. (Often, FMV at death.)
If everyone wants sister to have the property, they can gift it over to her. If the individual gift is over the limitation amount (Currently $12,000) a gift tax return should be filed. There will probably be no tax to be paid with this return.
Alternatively, each person can disclaim his portion of the house (If the house is covered by the will, you cannot disclaim intestate transfer.). However, how the disclaimer is treated varies according to law. (In the 8th circut it is treated as received by the disclaimer and gifted to recepient and in the 6th circut it is treated as passing directly to the recepient.) Most states will have a disclaimer statute to determine how things will pass. Many states have the person disclaiming be considered to have pre-deceased the decedent. The IRS has rules as to what a qualified disclaimer is. (One being that it has to be done within 9 months of the creation of the interest.)
Disclaiming can be done to avoid creditors, unless the creditor is the government. (For example, medicare.)
Either the deed (and gift) was properly delivered and accepted, or it was not. If it was, sister has sole ownership of the property and takes the mother's basis. If it was not, mother's estate has the property and will distribute it with a stepped-up basis. (Often, FMV at death.)
If everyone wants sister to have the property, they can gift it over to her. If the individual gift is over the limitation amount (Currently $12,000) a gift tax return should be filed. There will probably be no tax to be paid with this return.
Alternatively, each person can disclaim his portion of the house (If the house is covered by the will, you cannot disclaim intestate transfer.). However, how the disclaimer is treated varies according to law. (In the 8th circut it is treated as received by the disclaimer and gifted to recepient and in the 6th circut it is treated as passing directly to the recepient.) Most states will have a disclaimer statute to determine how things will pass. Many states have the person disclaiming be considered to have pre-deceased the decedent. The IRS has rules as to what a qualified disclaimer is. (One being that it has to be done within 9 months of the creation of the interest.)
Disclaiming can be done to avoid creditors, unless the creditor is the government. (For example, medicare.)