The amount in Box 2 of the 1099-C represents taxable income to the IRS. If there was any form of insolvency during the period this 1099-C was received would make it exempt from tax. I am not sure if this represents debt forgiven on a home mortgage in which there are exceptions to taxation, so I have included a few LINKs below which hopefully will help you in determining the next step to take.
http://www.justanswer.com/tax/6few1-does-spouse-pay-tax-amount-1099c-deceased-spouse.html
https://www.sapling.com/12199073/1099c-person-deceased
http://www.creditcards.com/credit-card-news/deceased-husbands-debt-haunts-wife-1294.php
