Inheritance tax liability

What is the name of your state? california
i am receiving an inheritance from the sale of my grandmother's farm (located in arkansas). my grandmother died in 1968 and her husband had died many years earluier. the farm was just sold this month, (april, 2003). the proceeds of the sale is to be distributed to eleven grandchildren. all of grandma's children have also passed on. will i have a state and federal tax liability on my inheritance? thank you in advance for your responce, jim

If the farm has gone up in value since the last owner died, you *may* have tax liability. Contact the estate representative to see whether the profits will be reported on an estate tax return or passed through to the heirs. (You'll pay lower taxes if the profits are passed through.)