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If you inherited property from a decedent who died before 2010, your basis in property you inherit from a decedent is generally one of the following and one of them is The FMV of the property at the date of the decedent's death.The FMV -- is Fair Market Value.
Therefore, in your case, the basis of the property would be fixed (at FMV) as of 2002, i.e. when she was 59 and not present time.
The following IRS link deals with this.http://www.irs.gov/publications/p17/ch13.html#en_US_2012_publink1000172221
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