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Life insurance proceeds are not taxable.
In general, life insurance proceeds are not taxable, as mentioned by @M-MTax , but interest earned on the proceeds may be. If the Trust earned over $600 in income during the year, you would need to file a trust tax return. You can do that by using the TurboTax Business product. Investment income would be reported on the K-1 schedules of the trust return Form 1041 that would be issued to the beneficiaries of the trust.
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