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Mother would have become the sole owner of the account and anything in it when grandfather passed away. So if she wanted to share it with brother, that is her choice, but he can't force her to do so.
If she did want to share, it would be considered a gift from her to him of $125K. Since this is above the $14K annual gift tax exemption, she would have to file an IRS Form 709 in the year of the gift with her taxes and use up a small portion of her $5.45 lifetime gift tax exemption so she wouldn't incur any gift taxes.
There are no taxes for brother as the recipient of the gift.