Losing a spouse does not simply cut your home's tax protection in half, and the details turn on how title is held, so treat this as a map of the concepts and confirm the specifics with a tax professional. When a home is owned jointly and one spouse dies, the deceased spouse's share generally receives a stepped-up basis to the home's value at the date of death. That resets the gain on that portion and can substantially reduce or eliminate the taxable gain attributable to it. In community property states the treatment can be even more favorable, stepping up a larger share. Separately, a surviving spouse who sells within a limited window after the death may still be able to claim the larger married-couple exclusion amount if the timing and other tests are met. After that window, the single-filer exclusion applies. Trust planning affects how the property passes and how the step-up works, and an irrevocable trust behaves differently from a revocable living trust. That difference is exactly why this belongs with an estate or tax attorney rather than a rule of thumb. Do not assume the worst; get your specific facts reviewed, because the timing of a sale can change the outcome a great deal.