@lojsimms
If the son was known to be incapacitated in the near future, it would have been better to execute a durable power of attorney rather than transferring the house. Hopefully the son’s condition is temporary.
If not, and there is no power of attorney for other important issues that may come up, it may be advisable to go to court to get someone appointed as the son’s guardian and legal representative. That person might also be able to swap the house back for the better tax treatment.
In any case, when someone is facing a long term incapacitation, such as due to a chronic illness or end of life issue, it’s a good idea to see an attorney who specializes in such matters. That would probably be an elder care law firm, since many of the issues will be the same with a younger person facing illness or end of life.
