I did not read all of the prior comments but some are pretty good.
My assumptions
The home was titled in both names with right of survivorship. Thus the home is not part of the probate estate and is yours.
You did not live in the home.
You will owe capital gains tax on the difference between the sales price and probably your mothers basis.
When your name was added to the deed did you pay your half of the cost or was a gift made to you? Was a gift tax return filed in that year. My guess is it was required but I do not know the dollars.
You will make a gift to who ever you give the funds too. Probably need a gift tax return but probably no gift tax.
Might talk to an attorney and see if you can maintain the home was not gifted to you when your name was added, you disclaim any interest in the home, the home passes as part of the estate (and avoids the capital gains tax you would incur when you sell) and if the three of you are in the will no taxes. Yes talk to an attorney to see if you can undo the adding of your name to the deed.
You probably do not have a Federal estate tax as I assume the estate is under 11million.
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