Inheritance tax

Any tax considerations of an inheritance (through a will) are normally taken care of by the executor before final distribution.
Example: the will says "Susie Q. is to receive $10,000." If the estate has the cash, Susie Q gets her money from the cash. If the estate has little cash, but has some stocks, the executor would sell the stock, deal with any tax consequences, and then give Susie Q the $10,000.
Sometimes there is a small income tax consequence to Susie Q, if the will says "Susie Q. is to receive the $10,000 CD that is held with BigBank." In that case, the CD and any interest it had earned until the death of the original owner would be un-taxed inheritance. Any interest earned between the time of death and the beneficiary's cashing out would be subject to income tax.
If the beneficiary is receiving an inheritance of a pension or IRA (as the plan beneficiary, not through a will), then the beneficiary would owe income tax on the distribution, it is not treated as "inheritance."