Upon both of their eventual death, the executor recorded the deed with the county. The house did not go through probate even though there was a will stating that the surviving children will have an equal share in the house upon their death. The county recorded the quit claim deed and it now has our parents and all three children's names recorded as owners. We intend to sell the house after renovation and split the proceeds. How do we clean this up, and will the children get a step up basis?
Or go to Bogleheads.org for your type of question if you accept advice from an anonymous global forum of non professionals who have no accountability if they give you bad guidance.
You need a Tax Attorney or a solid CPA to advise you on tax liability after a determination of ownership is reached.
You mention an “executor” did the QCd filing, so was probate opened?? and someone was named to be the executor of the estate???
Normally a will is entered into probate court and within the will there is someone named to become the Executor….. so probate court usually legally designates that person to become the Executor via Letters Testamentary and under a Independent Administration or a Dependent Administration. Did this happen? or is it that someone in the family is DIYing this but isn’t designated by the court formally as Executor?
If you and your siblings (& their spouses or partners) are not 100 & 1% all kumbaya with each other, and will not be 1000 & 1% willing to and able to equally pay all the costs for attorneys, tax pros and whatever fees plus house renovation costs without hesitation, then you for your own position - imho & NAL - need a probate atty who does litigation to deal with all this on your behalf.