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The best way is to allow the property to pass to the next individual through inheritance. The reason is because the person receiving the inheritance will receive a step-up in basis at the date of death. This means that the fair market value on the date of death will become the recipients new costs. If the property is given as a gift, the basis (cost) of the donor will transfer and possibly cause a significant taxable event. For example, let's say the property was bought in 1945 for $40,000 and it was sold by the recipient in 2010 for $500,000. The gain would be $460,000 in which tax would have to be paid. If the property is inherit, the and the property's fair market value is $500,000 at date of death and it is sold by the recipient for $500,000, the gain is zero.
You might consider converting the property as a rental between the recipient and the Mother.
See the following IRS publication 950 for more information on this matter:
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