How is a child's property taxed?

[etoile]

I am from New York State.

I was wondering how property law (in any state, in fact) deals with the following situation:

A family of US citizens owns a house whose mortgage is already paid, and which they own completely. The parents are the sole owners of the house. The children are twelve-year-old twins. The parents die suddenly in an accident, leaving behind retirement accounts, state tax-deferred education accounts, some stock, and the house. The surviving children have no living relatives.

What happens to that property? How is it taxed? Presumably, somebody keeps the property for them until they are 18. After that, do they automatically have to pay property taxes on the house? If they have no income of their own, do they need to use, for instance, the education fund for pay these taxes? What does their appointed guardian do? Finally, if they're in foster care and are placed with another household, what happens to the house?

[Snipes5]

Is this your homework, or a hypothetical situation? If you are wondering what what will happen to your kids if you and your spouse die suddenly, see an attorney and set up provisions to provide for them.

If this is your homework, research it yourself.

Snipes