one. Nephew in 1999 is deeded one halve of his Aunt and Uncle's residence but leaving them a life estate. The Uncle dies 2004 the Aunt in 2006 and the house is sold in 2007. His halve is gets him a little under $37,500. The attorney in West Virginia, I assume for the estate, says she does not think any gift tax returns were filed, but she does not think they were required. What step up does my guy get? The life estate should help???