Inheritance taxes are paid on the estate, by the estate, when a person dies. Any inheritance taxes due were paid (or should have been paid) by the estate when the estate was settled. The guns should have been valued at that time to settle the estate. VA collector has no inheritance taxes to pay. However, someone inheriting real property (VA Collector)would have a basis in that property that was the value placed on the property on the date of death. If VA Collector sells the guns for more than the date of death value he would/should pay capital gains taxes. If the guns were valued low for estate tax purposes, VA Collector could have a substantial capital gains tax.