unless the gift was set up as a life estate which you seem to indicate was not the case, you tax basis is his on the date of the gift. you get no step-up for date of death value. since you were the only one on the deed the gain and taxes are only yours. I would suggest that if it is possible that from the proceeds you subtract the taxes you pay on the gain. then the net can be divided 3 ways. you would also have to file a gift tax return reporting the gift of proceeds to them. due to the huge lifetime exemption there would likely be no gift taxes. you may want to confer with a real estate lawyer to see if some other outcome is possible.
