Do I report a $35,000 dispersal from my mother which contains $85,000 from her life insurance?

[PaulaM]

Can you explain further? You received $35k from your mother-as a gift?

[g-geiser]

My mother passed and left most assets to the trust that I am the PR for. It will come to me eventually but she passed in July...  my lawyer allowed a small dispersal. The trust will pay taxes on the annuities but there was also life insurance

[PaulaM · Accepted solution]

No, the partial disbursement of your mother's life insurance proceeds are not reported on your tax return. This is inheritance and not taxable to you.