[msheidi]

Here is our situation. My husband's grandmother passed away 12/23/08. She had already signed the papers to sell, but had not gone through yet. Everything closed in March 2009. Her final taxes were filed as well as estate taxes. Then in 2010, my mother-in-law took her taxes in to be taken care of and had the info from the house selling in with her paperwork. The tax person filed another final estate tax form claiming it was for the closing of the house and the dispersment of the funds there. Is this normal or was she ripped off another $400? I am not real knowledgeable, but I would have thought that anything further would have been done on my mother-in-law's taxes since she was the executor.

[joypulv]

The exclusion in 2008 was 2 million. Is this a state inheritance tax?

The house sold in 2009, so in 2010, taxes were owed for anything happening in 2009. So that must mean that the sale didn't transpire between grandmother and buyer. The house was inherited as part of her estate, and then was sold by the beneficiary.
I think, as you tell it.
This story is a bit unclear.

[msheidi]

Grandmother signed the papers about a week before she passed in 12/08 and put it in that whole "closing" time. Lawyers said that with the papers she signed, everything could still go on with the house and it would not have to go through probate. It was definitely under 2 million. The house sold for like $150k if that.