re: Can someone explain the “ins and outs” of inheritance tax for me?

1. Talk to a estate/succession attorney when they die.
2. The federal estate tax limit is 5.45 million for 2016. As long as the value of their estate is not over that limit, there is no federal estate tax.
3. If in Louisiana, Louisiana does not have an state inheritance tax. If in another state, see No.1.

Edit to add: Also, your wife will get a stepped up basis on the house. For instance, if the parent's bought the house 10 years ago for $300,000, and it is $400,000 when they die, her basis on the property will be $400,000, so then if you sell for $420,000, you will only pay taxes on $20,000 (not $120,000).