You will file a nonresident NJ return for your client. Since friend passed, your client will file as single (if taxable income was higher than $5050 in 2024 cannot be claimed as dependent). No home sale exclusion. There was more than likely a 1099S issued. ( may be in closing papers) Your client will claim 1/2 of proceeds). You asked if he could be claimed on her return ( I thought you said she passed so, no)