This will be treated as an inheritance. You will receive a stepped-up basis in the property.
The cost basis is the fair market value (FMV) of the home at the date of the last parent’s death, not the 1988 purchase price or the 1999 title change. This means that your cost basis resets to the FMV rather than the original purchase price, reducing future capital gains taxes when the property is sold.
If the home was worth $500,000 when your last parent passed away, and you sold it for $520,000, your capital gain would be:
$520,000 (sale price) – $500,000 (stepped-up basis) = $20,000 capital gain
This gain would be split between you and your brother (assuming 50/50 ownership), so each of you would report $10,000 in capital gains.
https://www.irs.gov/publications/p544#en_US_2024_publink100072269 is an authoritative source for Basis information.
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