Good day Thomas,
I am sorry for the loss of your Aunt.
The principal of the life insurance policy and the trust are not subject to income tax. If the taxable Estate (all assets) exceeds $12,920,000 an Estate tax return, Form 706 would have to be filed. That would not be your responsibility as a beneficiary.
You would be responsible to pay tax on any earnings received on the $80,000 after the date of death of your aunt.
The information provided regarding your personal income tax pertains to both the IRS and state of Michigan.
Here is a great article on protecting your inheritance from taxes
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