I found this description on Ubuntu forum http://ubuntuforums.org/showthread.php?t=576907
Re: Inheriting permissions
If you are sharing files with few people. You should create a group for that folder. http://www.cyberciti.biz/faq/howto-linux-add-user-to-group/ Let's say the folder contains open office docs. Create a group called, /data1/washuDataReformatted and put all the users who need to write to that group. The users might be Jane, Bob, and John. Set folder to 770 on /data1 folder.
groupadd analysts
useradd -g analysts bhoom
If you already have stuff in that folder,
chmod -R 770 /data1
-R is recursive
After that set your setgid by typing
chmod g+s /data1
It will inherited the group permission now on.
Hope it works?!

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