known to the family that said beneficiary was dying of cancer. Do the funds go to the estate of the deceased beneficiary? Or is his share forfieted because he died before disbursement? On April 14 you said "If the children later sell the house and it is not their principal residence, yes they will have to pay tax on the gain, as you have described." In this case, is the gain the difference between the current market value of the inherited property and the market value of that property at the time of the parents death? Or is the gain from when the parent had originally purchased the property and todays current market value? Hi, this is something I'm asked frequently so I should have been clearer in my post. The child will pay the gain on the value from the day the child acquires it, NOT from the date the parent originally acquired it. Hi Lynne, My father died a few years ago, leaving everything to my mother. My mother was recently injured and is now incompetent. My sister and I are sole beneficiaries in her will, and also have power of attorney. She owns a numbered company that holds stocks as assets, and my question is whether anything can be done with ownership of the company or assets to reduce taxes payable on her death. Thanks in advance for any help. A. Our Aunt died in 2006.benefactors she left in her will, predeceased her. She left no new