That depends. When you inherit money that was taxed while the person who passed was alive then they already paid taxes on that money. So it is not taxable to the heirs. But if they did not pay taxes on the money (money earned after they died, like interest, and retirement accounts, etc.) then it is taxable to the heirs.
In your case all of the property appears to have been transferred into the trust including the money from the sale of the house. Since you are the sole beneficiary of the trust, when it starts distributing money to you there may be some earnings from investments that is taxable but the main amount of money that was deposited there by your father will not be taxable as it is distributed. If the trust does well and earns a lot there may be taxes due. But it sounds like a purchased annuity might be a good way to go.
@MCbluelake
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