Have a Tax Question? Ask a Tax Expert
Good evening. No, you need not worry at all. There is no tax to you. First, there is no estate tax upon the death...and the basis in the property gets increased to its fair market value at death. The 1099 only indicates that proceeds were distributed to you. You take that amount and report it on Schedule D as the proceeds received. But, you take the stepped up basis as the basis, with no resulting gain and therefore no tax.
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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.