I don't know whom you are refering to as Sandi and "his", but will do my best to answer your question.
Earnings (interest and dividends) from both savings accounts and money market accounts are taxed as ordinary income. There are exceptions if the funds are held within certain tax-advantaged trust accounts such as Roth IRAs and Education IRAs (Coverdell Education Savings Account) or "529 Plans"
If you are talking about accounts inherited from an estate, the proceeds are in most cases not taxed when dispersed to heirs. Taxation only happens for very large estates.
If I have not interpreted your question correctly, please rephrase it so I can address your specific situation.