California-We have lived with my husband's parent for 22 years and currently their will states that at the time of their death the house is to be sold and the equity divided up equally between the four children. His parents do not currently have a mortgage on the house. We would like to buy the house, and take out a loan and pay off the other siblings to keep the house in the family. Would we be able to do this the way the will is written? Would we have to pay a tax on our portion of the inheritance if we used it to buy the house? Also, they currently have a very low property tax assessment. Is there a way that we can "grandfather" into that tax rate?

If you are a direct descendant and the home is passing to you then your covered by prop 13. As far as the sale of the home goes so long as all parties can agree on a price and agree to the sale then there shouldn't be any problems.