I was supposed to receive a considerable inheritance from my friend who died, but there was a problem with his will. After suing, I received a settlement from his estate. Is this taxable?

I was supposed to receive a considerable inheritance from my friend who died, but there was a problem with his will. After suing, I received a settlement from his estate. Is this taxable?

No. An inheritance, regardless of amount, is not taxable. A settlement from the estate representing an inheritance likewise is not taxable. Note that any legal fees you paid to receive the settlement are not deductible because they relate to tax-free income.