My father was a UK citizen and lived all his life in the UK. I am a US resident. He recently died and under the terms of his will, I am to receive an inheritance in excess of $100,000. If the money is transferred into my US bank account, does that become taxable income?

1. No, you don't pay any federal tax. Any thing (money and property) you receive as gift or inheritance, you (the receiver) don't pay any federal tax. In the U.S. only the donor has gift tax implications; but your father is a foreign person so this gift is not taxable in the U.S.

2. For any State tax liability check at your State's web site. For most of the States there is no tax.

3. However, since it is coming from a foreign country, the IRS wants to make sure that it is a actually a gift.
So the receiver must file File 3520 Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. The form 3520 is due on the date of your return including extensions. You can download Form 3520 and Instructions from
Internal Revenue Service

MukatA covers it all. I have nothing to add.