Let me guess, Mom still lives in the house?  But now if she goes to a nursing home, the taxpayers cover the expense while the kids go on a cruise?  Or maybe this is a second home that has been in the family for years.  Too bad they don't get stepped-up basis if they decide to sell after Mom's death.

@Karen_pdx writes that "The formation of the LLC could be for ease of management & for estate tax reasons."  Well, you see how easy it makes management.  As I have noted previously, there are two kinds of state, those like California that have an annual fee for LLC's ($800 in CA, right?) and those that soon might, as Washington cuts off funding.  There's really no way this saves on estate taxes, but that sounds good. 

If they're trying to evade the $10K SALT cap, they can't do it with a properly-prepared K-1.  Since they're not in business, they shouldn't be preparing a 1065 with any amounts on it anyway.  Zero income, zero deductions, attach a statement that says "personal assets only."  Substance over form.