Does it make sense for her to give up her ownership of the property now using a quitclaim deed since she will be giving me her part of the house upon her death anyway?
No, not at all.
Will this save us all money and time?
No. In a sense, it will cost you money after she passes.
If she quit-claims the house now, the remaining owners each get half of her share and have of her original cost basis.
If the house is passed in the will after she passes, then each of you inherit half of her interest, and get a step-up in the cost basis that is the FMV of her share on the date of her passing.
