Note that if your grandmother holds the real property until her death, she is likely to receive a basis step-up in the residence, eliminating capital gains for the heirs upon sale versus possible capital gains to your grandmother if sold during her life.

That's a red flag for me.d) death by Google: I Google everything I can about the sponsor.

You need an appraisal from date of death because you get a step up basis at death for the capital gains.Do you or any of your siblings want to live in the property.  

Sadly the tax assessors are now Big Brother and if brother moves out the property tax could be reassessed to date of death. 

I have litigated/defended premises liability cases (death/injury at rental property) in multiple states, and I use this experience to help my clients understand what really happens when something goes wrong.

Then you shouldn't have any issues with the transfer of the property upon their death.

There are already a lot of good ideas here, but one point to clarify in regards to taxes is that when you inherited the property, you received a step up in the basis of the property to fair value on the date of death (or 6 months later depending on which value was higher).  

She must use the proceeds of the sale to purchase new real estate.If she moved from that house in the last three years it is possible she could have some tax relief as part of the exclusion of sec 121 but I'm sure the accountant looked at the dates and calculated that she had been gone for too long.She absolutely could have done a 1031 exchange to purchase new rental property and continued to defer the tax until death.  

While a land trust provides privacy, events like a death occurring on a land trust property a victim can find out who the beneficiary is and they can be liable.

It is part of the death benefit.