Is it permissible for him to inherit property that was bought with a riba-based loan?
Question

                Can a person inherit property or a business bought with a loan that had interest on it ?.
Praise be to Allah.
    If a person takes out an interest based loan and buys 
    property with it, when he dies the property becomes part of the estate which 
    is inherited from him, but he has sinned by dealing in riba. 

    Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) said: 

    What is haraam because of the way in which it is acquired is 
    haraam for the one who earns or acquires it, such as riba. But if the person 
    who dealt with riba dies, then his wealth is permissible for his heirs. What 
    is haraam in and of itself, such as alcohol, is haraam to the one who 
    acquires and to the one to whom he passes it on. Similarly, if a person 
    steals something or seizes it by force then dies, it is not permissible for 
    his heir (to take the stolen property); if he knows who it belongs to he 
    must return it, otherwise he should give it in charity on behalf of the 
    owner. 

    From Liqaa’aat al-Baab al-Maftooh, 1/304 
The Standing Committee 
    issued a fatwa concerning a person who built a house with a riba-based loan, 
    stating that he has to repent and seek forgiveness, and that he does not 
    have to destroy the house; rather use may be made of it by him or someone 
    else living in it. 

    Fataawa al-Lajnah al-Daa’imah, 
    13/411. 

    And Allaah knows best.