In the US you can sell a house once per lifetime (primary residence) and not pay income tax (capital gain) on the house. Up to a certain amount, perhaps $300,000.
But only one time.
Thus if your parents, for example, end up in the end with no money and only the house, you sell the house, which all quickly goes to the assisted living/nursing home and/or medical assistance, then they suddenly die broke before tax time, the administrator and estate wont have a huge tax obligation on the house. This happens all the time.
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