If it's only money that was left to you, it's not considered taxable to you because they've already paid tax on it as they got it.
The only thing that would be taxable is the money YOU make on it now (interest earned, or dividends from investing).
Thank you! Follow-up: The will specified an amount, $30,000, but I actually received about $4000 more due to interest accumulating during the several years the estate was being settled. That interest was earned largely before I even knew I was named in the will ... so one could argue that *I* did not earn that interest, even though I eventually received it. So my follow up question is, am I liable for taxes on that $4000 interest that is in excess of the $30,000 actually specified in the will?
It's likely that the estate paid taxes on the interest as it was earned. The real question is did you receive a 1099-INT for it? If you received that or any other document with your name and SSN, then it does get reported on your return. Otherwise, the estate most likely paid tax on earnings year by year.
Thank you very much for responding with that helpful insight. There was no 1099-INT, which is why I became puzzled, because if there was one, then it would have been obvious what to do. Not receiving that documentation, and the possibility of not having to pay taxes which that non-receipt implied, seemed just way to fantastical to be true! I mean really, our government, at all three levels NOT collecting a fee on the movement of money! How crazy is THAT!