Any estate or inheritance tax would have been paid by the estate administrator before the funds are distributed. Inheritances are not subject to income tax.
Mostly, yes. But:
* some things (Annuities, for example... or some insurance policies structured like annuities) have dedicated beneficiaries and MAY BE taxable
* Income taxes paid by the estate on the last year are often passed through to the beneficiaries via a K-1. It can be more tax efficient this way. In other words, instead of one person (the deceased) in the 33% bracket paying tax on $200k, you might split this 5 ways and effectively have 5 people in the 25% bracket paying tax on $40k.
Not a CPA... so be skeptical of what I say... I've just been on the taxed end of this.
Mostly, things in non-Rockefeller type estates are not taxable. But there are investment vehicles out there that cash out on death that may be taxable. Just sayin'.