Very confusing situation for me. Grandpa passed away in 2004 , Grandma continued to live in their home. In 2007 Grandma, for whatever reason, decided to create a Quit Claim deed naming her two children as recipients, however, the Quit Claim was never recorded and Grandma continued to live in the home until her death in 2023. Grandma, while still living, also created a Transfer on Death instrument in 2019 for the house to the two kids and this TOD was recorded with the county.
I'm thinking as far as cost basis of the now-inherited home, probably best to forget about the Quit Claim and just rely on the TOD so that the new basis would be the value of the home at the time, 2023, of Grandma's death, right ? Wrong ?
Just out of curiousity, had Grandma actually recorded the Quit Claim back in 2007 and moved out, how would the basis of the been determined for the sale when the kids eventually sold it?
Thank you !
