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Getting back to the original question -

Generally an inheritance is not taxable income to the recipient.

The main thing that IS taxable is an IRA or other retirement plan. A Roth IRA would retain it's tax-free nature, but will have required minimum distributions once inherited. For these retirement accounts, the taxable amount is the amount withdrawn from the plan, not the value of the account.

Pretty much everything else that you ordinarily see - houses, cars, investment accounts, cash, jewelry - those are not taxable income when inherited. I don't know all of the state income tax laws, but I'm not aware of any that include an inheritance as taxable income.

This is a separate question from an inheritance or estate tax. There is still a Federal estate tax, but it doesn't affect estates which are worth less than about $11 million. I believe a couple of states still have an estate or inheritance tax. These are based on the value of the estate or inheritance received. So you might want to check any state laws.

--Peter
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