My mom died in April of 2011. She left a will that stated her house to be sold and debts paid and then the balance to be split between her 5 children. We got a partial check for $8000 in December 2011. The question is do we owe estate taxes and need to file this on our tax return. Our state doesn't have an inheritance tax.

If your share of the estate is $8,000, then, by basic math, her total estate after debts were settled was about $40,000.

NO WAY are there any estate taxes due at either the federal or state level; her estate was too small.

A ficuiary return (Form 1041) MAY be required to document the sale of the house (no tax will be due), but other than that, everything should be good to go.