paying taxes on Inheritance money

Our question is should federal and state taxes been paid before the distribution of the inheritance money? or do the partys reciving the money give there social security # to the lawer that handled it so they can give them a 1099? we are in the state of Indiana.

Distributions from the estate can be principal - in which case there is no income tax - or income, on which taxes have not been paid, or income that the estate already paid tax on. Ask the lawyer.