Thank you for your question. The heirs or beneficiaries who inherit property of this nature from an estate do not pay inheritance tax. Neither the U.S. or Airzona assess inheritanced tax. However, if you then sell the house, you may have to pay capital gains tax. to figure the capital gain on which the capital gains is figured use this formula:
Capital gains (inherited property)= sales price - (FMV as of date of death, + improvements, + major repairs) - cost of selling.
FMV stands for fair market value.