How do I avoid paying taxes on inherited properties

[Jessica Flint]

My parents have been working on setting up their living will. I will be inheriting their two houses but I wouldn't want to keep either as a rental. I'd probably, most likely, do a 1031 exchange with both of them. What would be the best way to inherit these properties without having to pay taxes? Would I pay taxes if I do a 1031 exchange? What if we started an LLC and all three of us were in it? When they pass, and if I were to sell outright, what kind of taxes would I pay? Suggestions on how to go about setting this up?