<prompt> Human: Hi!I am set to inherit in the very near future about 15,000 from a life insurance policy. I have been told mixed things, including that I will not have to pay taxes on this money. Is this correct? This is just one portion of the total of money, there are many beneficiaries.Secondly, over the course of the next while, there will be some real estate sold, of which I will inherit a portion. I am confused on the inheritance tax here as well. Will I be subject to the 40 tax rate, although my portion of the inheritance will be quite small and significantly below the federal and state cut off? The total real estate value is something like 8 million. Also, how does this work when the real estate is in two states, and I live in a third state?  <response>: Generally, life insurance proceeds received by a beneficiary on account of the death of the insured are not included in the beneficiarys gross income and are not taxable.Also there is no federal inheritance tax, so if you receive proceeds from the sale of a decedent property you should not have any tax liability.States differ on some of these tax issues. 