Estate or not?

What was the TIN used for the 1099 on the sale of the house?  That should tell you what you need to do with the sale.  I've seen title companies us the SSNs of the 3 heirs which makes it rather easy.

Sorry--I tried to answer the question I thought you had asked not the question you really asked!  I wouldn't ignore the 1099's that the daughters will probably receive from the title company.  Reporting the sale on each daughter's return makes it much cleaner.  I make a habit of NEVER ignoring 1099s even when they are a washout.  Nobody likes to hear from those nice people at the IRS even when there is no tax change.

   I don't do too many estate returns so you might want to take this with a grain of salt.  Filing requirements are estates with gross income of $600 or more.  In your case if house was not rented out or interest earned before distribution of assets I would not file any estate return.  There was no income.  But I have also heard in you "Woof" real loud a certain dog from the east coast would chime in with a more authoritative answer.  Dogs are smarter than road runners.  I can start it for you.

   "Woof"  "Woof"

I'm not as authoritative as that east coast canine, but I certainly wouldn't file any estate returns in this case.

I have seen many estates open and close with no 1041...because no income was earned as Taxiowa confirmed.

But the house sale should be shown, (1099's or not, because the house was sold in their names)...even if it is to show a break-even. (Because the IRS doesn't know there is no gain until we tell them)

I have filed several 1040's in recent years under exactly the same circumstances...no comebacks.