Google, 'distribution from trust'. You'll get some good basic info.

I wondered if the trust has been in place for a long time, is interest earned in previous years rolled into principal, or would it always remain listed as interest earnings?

One bit of information at a time here I do use Google and I don't like thata AI results are listed first. I feel like on some of my searches, I could respond with more depth that AI does.

Thanks for checking in!

that tell you the types and amounts of income you are responsible for paying tax on, if any.

I'm glad I won't be doing the math

With assets that pass directly everything gets a new cost basis set either to day of death or 9 months later. Not sure if a trust gets the same step up. Otherwise the gain is calculated from purchase ot aquisition price. Long term capital gains have their own tax rate. Do you have an accountant?

Whether assets in a trust receive a step-up in cost basis when the settlor dies depends on the type of trust:
Revocable trust
Assets in a revocable trust are eligible for a step-up in basis when the grantor dies. This is because revocable trusts are considered part of the grantor's taxable estate.

Irrevocable trust
Assets in an irrevocable trust do not receive a step-up in basis when the grantor dies. This is because irrevocable trusts exist outside of the grantor's estate.

The IRS Revenue Ruling 2023-2 states that assets in an irrevocable grantor trust do not receive a step-up in basis. This ruling was issued in response to beneficiaries claiming a step-up in basis at the grantor's death, which would have reduced the beneficiary's tax burden and cost the government tax revenue.

I'll mull this over. My dearest friend named me as a beneficiary of a trust she set up. She passed away last month. I just found out Sat., but have no details. I don't have an accountant, and I don't know if I'll need one. I was curious about what I should expect going forward.