So my deepest sympathies for your wife's and yours loss. So when someone passes away assets, such as the house, the basis or the value, would be the fair market value as of July 2nd. So the house would most likely have no tax impact. The car gets this same stepped up basis, so again there is most likely no tax impact.
Generally, life insurance proceeds your wife would receive as a beneficiary due to the death of the insured person, aren't includable in gross income and they also don't need to be reported.
So what remains is the retirement account. This would would be taxable income to your wife if pre-tax dollars were used to fund the account. If post-tax, which is called a Roth IRA or 401K, then there would not be a tax impact
The inherited account must be fully distributed by Dec. 31 of the 10th year following the year the participant dies, which is the 10-year rule for decedent retirement accounts. Your wife could take a lump sum or take an annual RMD, which would be taken over the her life for up to 10 years.
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