Hello,

First, this is happening in Illinois, if that makes a difference. My dad passed away in January. We are in the process of settling his estate. He had established a trust, which included his house.

My siblings and I are trying to figure out if we will be on the hook for capital gains taxes when we sell the house. He bought it in 2017 for about $240,000. We will probably be able to sell it for about $325,000. And there is about $170,000 left on the mortgage. Again, it was successfully placed in a trust.

We also have his retirement account to deal with. There is about $205,000 to be split 3 ways. Any advice on how to make the most of that money with the least amount of penalties and/or taxes?

My wife and I make about $185,000 and file jointly. We have 2 kids, 7 and 4. And one coming in June. I really appreciate any advice and insight you can provide.

Thank you

Edit: I am a teacher and eligible to establish a 403(b) retirement account. My wife works in the private sector with a 401(k)