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My question is in regards to the equities that were sold after her death. Will the estate have to pay taxes on the capital gains?

Yes and no. Yes, the estate will have to report the sale of the stocks. But the cost basis of each stock is changed to the FMV as of the date of her death. So you may not have as much gain as you are thinking.

Peter and others ...
Did I understand this correctly? When assets move from the decedant's name to the estate's name they get a step up in cost basis?

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