Hello all!

My wife's father just passed away. He lived in California and we live in Virginia. He left her 50% of his estate. The majority of what he owned was joint tenacy so she is in essence getting 25%. CA law states that the surviving joint tentant assumes ownership but his wife wants to honor his wishes so my wife will actually receive 25% of the joint tenant assets and 50% of the one property that he owned by himself.

The total value of the joint tenant property is about $1.7 million and he owned one house worth about $80k. So his portion of the estate is about $900k which she will get half.

I think it breaks down to something like this:

Cash = $80k
Home residence = $222k ($550k - $328K mortgage)
One piece of commercial property = $650k
Other commercial property = $800k (approximately)
Other property he owned solely = $80k

I assume the cash would be distributed when it's all settled.

The home residence has since sold and will close in a couple weeks.

The $650k commercial property will be placed on the market soon.

The $800k other commercial property will remain

Guess the sole property will remain also. ($80k)

I am approximating she will end up receiving about $250 in cash (cash plus sales proceeds) and own about $200k or so in rental property.

My question is what will we owe in inheritance/estate tax when it comes to Federal and State taxes and what will need to be reported.

I read some other posts about a 1.5 million exception so I am hoping his share of approximately $900k counts towards that limit.

Guess we will have to report the sale of the house and commercial property on our taxes. I read in another post about her Dad's basis being bumped up to FMV at the time of his death?

Any advice would greatly be appreciated. Kind of trying to figure out whether I need to hire someone to handle some of this for me or not. I have tried to include as much detail as I could.

Thanks in advance for you any help someone might be able to offer.

Keystone