What is the best way for an executor to distribute money in an estate
to each person named in the will to avoid paying little to no federal
taxes by each individual?
Also, what is the best way to avoid taxes on investments like cd,
mutual fund left in a will:  by naming a beneficiary or leaving to an estate?

I'm not a Google researcher, but I am currently distributing assets to
beneficiaries of a will and living trust. From what I was told by the
accountant advising me, inherited money is NOT taxable to the
individuals receiving it, unless it comes from an investment funded by
pre-tax dollars such as a 401K or traditional IRA, in which case it is
taxed like ordinary income in the year the beneficiary cashes it out.
Anyhow, that's just an FYI, but I'm sure a researcher will have a more
authoritative opinion than mine.  :-)