no money changed hands directly from parents to children. (not a gift)
Yeah, but that is NOT the test as to whether a gift was made or not. In this case a gift was made.
So, what is a completed gift? It is when the recipient has full-control of the asset.
Correct and the daughter has full control of her 1/3 interest in the property.
No offense but you're really lost here and need to stop posting information that is a product of your misunderstanding and misapprehension of the law relating to taxes and gifts.
