Hello @Meggie235 ,
I am sorry for your loss. Whether or not you will be taxed on the money you inherited from your mother's trust depends on several factors, including the type of trust she established and the nature of the assets held in the trust.
If the trust is revocable, also known as a living trust, then the assets in the trust are considered part of your mother's estate and may be subject to federal estate tax if the total value of her estate exceeds the estate tax exemption limit. However, as the beneficiary of the trust, you would not be responsible for paying any estate taxes. Instead, any taxes owed would be paid out of the trust assets before they are distributed to you.
If the trust is irrevocable, then the assets in the trust are generally not subject to estate tax. However, if the trust generates income, you may be required to pay income tax on that income. The amount of tax you would owe depends on the type of income earned by the trust and your tax situation.
Please note that state laws regarding inheritance taxes and trusts vary.
Here are some links for additional information:
https://turbotax.intuit.com/tax-tips/estates/what-are-inheritance-taxes/L93IUc3sC
Is my inheritance taxable?: https://www.irs.gov/help/ita/is-the-inheritance-i-received-taxable
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