Am I legally required to report my inheritance to the state?
Response 1: Why receiving government assistance, you are required to report any income including inheritance. Otherwise, if you do not report and you receive benefits that you should not have received because of your lack of reporting, you could be charged with fraud. Also, the government would ask that any payments to you during that time of non-report be returned.
and cant I pass it to my daughter?
Response 2: You cannot pass your inheritance to your daughter while you are on government assistance. If you are discovered, you would be charged with defrauding the government. That is a very serious charge with serious consequences including jail time. See Revised Code of Washington Title 74 Chapter 74.08 Section 74.08.331:
(1) Any person who by means of a willfully false statement, or representation, or impersonation, or a willful failure to reveal any material fact, condition, or circumstance affecting eligibility or need for assistance, including medical care, surplus commodities, and food stamps or food stamp benefits transferred electronically, as required by law, or a willful failure to promptly notify the county office in writing as required by law or any change in status in respect to resources, or income, or need, or family composition, money contribution and other support, from whatever source derived, including unemployment insurance, or any other change in circumstances affecting the person's eligibility or need for assistance, or other fraudulent device, obtains, or attempts to obtain, or aids or abets any person to obtain any public assistance to which the person is not entitled or greater public assistance than that to which he or she is justly entitled is guilty of theft in the first degree under RCW 9A.56.030 and upon conviction thereof shall be punished by imprisonment in a state correctional facility for not more than fifteen years.
(2) Any person who by means of a willfully false statement or representation or by impersonation or other fraudulent device aids or abets in buying, selling, or in any other way disposing of the real property of a recipient of public assistance without the consent of the secretary is guilty of a gross misdemeanor and upon conviction thereof shall be punished by imprisonment for up to three hundred sixty-four days in the county jail or a fine of not to exceed one thousand dollars or by both.