Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
Yes, you file an estate tax return in the year of the death
Also, the cancellation of debt on the primary residence will be claimed on the estate tax return for 2012 since it happened post mortem.
Is there anything else I can assist you with today? If not, please rate my response as "excellent" so that I may receive credit for assisting you today.
What do I do with the cancellation of debt from the primary residence since it was issued one year after the date of death
He passed in 2011 so there would be 2 estate tax returns?