<prompt> Human: My husband and I are in a decent place financially; both employed, paying down student loans, and slowly rebuilding our savings after buying a house last year. No credit card debt, and our cars are paid off.My parents are... not so much. A foreclosure, and a bankruptcy mean that they cant really get credit without ridiculous rates. They currently live in a house with my grandfather; his name is on the mortgagedeed, and they pay all the costs. He also owns the cars they drive. Hes relatively healthy, but getting older.Ive recently found out that my grandfathers will leaves everything to me, on my parents advice. If they inherited they would have to refinance to a much much higher rate or pay off the remaining cost of the mortgage at this point, about 40k; the house is valued at around 110k. I will be expected to continue renting the house to them, while they pay me the mortgage payments. Im assuming they will also pay the extra costs of insurance, utilities, etc.I know Im going to be stuck with inheritance tax, and that Ill be paying tax on rental income hoping I can roll some of that into their payments to me. Other than those, what do I need to start preparing myself for, and how screwed am I?disclaimer: Im not willing to go nuclear and sell the house andor evict them, but I also dont want to ruin my life ifwhen this happens. Just looking for finance advice, not relationship advice.  <response>: As the others mentioned, you will not have to pay any federal estate tax. So thats good.However! Many states do have their own estate tax. So do a google search for statename estate tax and google will tell you the answer. For example, in Pennsylvania its 4.5, so for about 100,000 estate, youll need to pay 4,500. If it was Arizona, google says 0. So do that search and get the bad or good news.Even if you do need to pay a state estate tax, youll still come out way ahead, since youll own a house which is more than half paid off.As far as future rental income, the taxes on that will always be way less than the net profit. So youll come out ahead on that too.So, youll be ok. And I hope your grandfather stays healthy for quite a while too! 