<prompt> Human: My father is getting older and in poor health, and I am his only child and sole beneficiary. A few weeks ago he told me that he has been taking out cash every week from his pension payments and putting it into a safe deposit box at the bank. He is doing this to leave me with an untaxed inheritance, but I think this is a really bad idea aside from the obvious morallegal issues because it will be difficult to invest, or do anything with it for that matter, without incurring the wrath of the IRS. My questions: What is the law on cash inheritance in Mississippi? Does it make a difference if I live in a different state from him?What can I do to both stay in compliance with the law, and not tell my very stubborn but lovable father what to do with his own money?  <response>: Mississippi does not have an inheritance tax nor a gift tax.Federally, unless your father is leaving you more than 5,430,000, that wont be taxed, either.So far as to your question about which state applies--estategift taxes are paid by the givers, so it would be your fathers state. And cashnot cash really dont matter. 