Legal Question in Wills and Trusts in California

Federal Estate taxes are paid by the estate, not the people who inherit. If your father had no other signifcant estate assets--and estate assets for federal estate tax purposes can include life insurance pay-outs--there won't be a federal estate tax. There is no federal inheritance tax.

It is a bit confusing as to why he died 4 years ago and nothing has been done to resolve the matter before now. Date of death controls the amount of property that can pass without an estate tax..

You probably won't have any capital gains tax as prices have dropped since the dod. But you may have some re-assessed property taxes if you didn't file the exclusion claim in time.