@tinam wrote:
...My question is -Is this considered an inheritance or what??? and is there a way to avoid paying a huge capital gains?
Yes. Basically, the value of the remainder interest (which will be an "inheritance" of sorts) will be stepped up to its fair market value as of the date of death of the life tenant(s).
Therefore, if the property is sold shortly after death of the life tenants, there should be little, if any, capital gain.
See IRC §2036(a)
