Paying off my parents mortgage?

[captZEEbo]

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The house is only worth $150K right now if they sold it. I think there is $35Kish left on the mortgage.

[/ QUOTE ]are you sure you'll be dealing with an estate tax? If they are living in a $150k house, I think they might not have a big enough estate to tax. Assuming you're talking about the US estate tax...
"The applicable exclusion amount increases to $2,000,000 for decedents dying in the years 2006, 2007 and 2008. The amount increases to $3,500,000 for 2009"