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?

[Brian Eastman]

@Trent V. The inherited 401k could be rolled into a self-directed IRA. There would be no tax implication in the transition, and the self-directed inherited IRA could be invested into real estate. You will be required to take a minimum amount of taxable distributions from the IRA annually, and can likely do that from earnings on the real estate without needing to worry about liquidating the plans investments. You will want to take a careful look at that math.