I think you should discuss this with your landlord. Your landlord may be happy to handle the sale of the house while she is alive, and not leave that to her heirs. Additionally, she may be happy to have extra income.
Why would you think that the state would own the home after the death of the landlord? Did you mean to say estate instead of state? In any case, whoever would own the house after your landlord's death would have to respect your existing lease.