How to avoid taxes on an inherited 401K?

[Trent V.]

My mother in-law passed away and there will be a a 401k and possibly a a piece of the property that we may inherit. 

I’m curious if there is a way to roll the 401k into a self directed Ira to avoid tax benefits then use the self directed ira to invest in property’s. 

Is there any other avenues that someone might use to 1. Avoid taxes. 2. Have a mind toward using it in real estate investments?