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Thanks. You will owe no taxes. There will be no gain from the sale of the house because the basis gets increased to fair market value at death...so a sale at fair market value will generate no gain and thus no tax. On the estate side, there is no Federal or state estate or inheritance tax....at the Federal level, tax doesn't start until $5,000,000 in assets; on the Illinois level, tax doesn't start until $2,000,000 in assets.
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