If you are lucky enough to inherit property, you are essentially being given a cash cow. Here's what you need to know to maximize the windfall:

• Estate taxes: According to current tax laws, unless your total inheritance surpasses $2 million, you will not owe estate taxes. The applicable tax law varies by year — for instance, the nontaxable amount of an estate received in 2007 is $2 million, but in 2010 the estate tax will be repealed — so check with the IRS or a tax professional if you are uncertain, or if your gains exceed $2 million.

• Market value: When you inherit property, the property's cost basis is adjusted upward to the current market value. You will need a professional appraiser to determine the house's market value when it's inherited. It may make sense to sell inherited property quickly — your gain on the sale will be whatever price you receive, less the stepped-up cost basis of the home, so a quick sale could reduce your taxable gains and the cost of upkeep. The $250,000 tax shelter on real estate gains doesn't apply in this case unless you've lived in the house for two of the five years before it is sold.

If you receive a cash inheritance, and you can afford to indulge yourself in a few luxuries, go ahead and spend 10 to 20 percent of it, but by all means invest the rest in your savings, real estate, or retirement plans. Inheritances can bolster your assets and investments substantially, so it's only smart to maximize the opportunity and use them to build wealth.