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by Rob Seltzer
Your question involves estate taxes. Estate taxes are always paid by the estate not the people who inherit the property. The amount of the estate exemption would be dependent upon when your father-in-law died. If the year of death was 2012, that amount would be $5,120,000 and for 2013, it was increased to $5,250,000.
So if the value of your father-in-law's estate was below either of those applicable thresholds, there would be no estate tax to pay. If we assume that this was the case in your situation, there would be no tax to pay. Since there was no sale, there would be no government withholding either.
Rob Seltzer is principal of Robert Seltzer, CPA, PFS, in Beverly Hills.
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In accordance with IRS Circular 230, the information on this website is not intended or written to be used, and cannot be used as or considered a "covered opinion" or other written tax advice and should not be relied upon for the purpose of avoiding tax-related penalties under the Internal Revenue Code; promoting, marketing, or recommending to another party any transaction or tax-related matter(s) addressed herein; for IRS audit, tax dispute or other purposes.