Legal Question in Real Estate Law in California

The minimum estate size triggering tax liability, and the tax rate, vary from year to year according to the whims of Congress. In order to be sure, I'd recommend contacting the Internal Revenue Service directly, and be prepared to give the date of dad's death and the approximate total value of the estate. In general, however, most estates are too small to trigger the inheritance tax, even when there is a house involved.

There are other taxes to consider as well as the federal inheritance tax. The heir will become responsible for local property taxes, for example. If and when the property is sold, the heir may have a capital gain, which will be taxed, and that rate is currently due to go up at year end.

If you are inheriting real estate, I'd recommend retaining an attorney who handles wills, trusts and estates (not me) to advise you on probate proceedings, dealing with (or being) the executor, reporting and paying taxes, transferring title on the record, and related matters.