All good questions.  Deed was to avoid probate.  Kids knew they were remainders.  Mother gets $250K exclusion but she receives only a percentage of the selling price as there is a chart based on age to calculate her take of the proceeds.  Remainders split the rest of the proceeds equally.

Sale is pending but kids expect checks which they will keep.  Mom is now living with a daughter so house is vacant.  But mother lived in house for at least 2 of the past 5 years.

Doing Mom's return plus one of the kid's.

Too late to deed interests back.