parents house in childrens' names

QUESTION: In 1996 my mother and father purchased a home (for $95,000)
to which was deeded to myself and my brother in the event they would
someday require nursing care and couldn't afford it (they didn't want
government to take it).
Parents have both recently passed on and house has been sold
for $172,000.
Are there tax impication for myself and my brother?
david ingram replies:

If they paid for the house and all the upkeep and maintenance on the house for the last ten years, then it was their house and you were just holding it in trust for them as/like a life estate (paperwork would have been nice).

In that case, it would be tax free up to the date of death. 

Any increase from the date of death to the date of sale would be taxable although the costs of sale might be enough to wipe out that gain if the sale was soon after their deaths.