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It is from a liquidated trust.
If the trust was revocable then the cost basis of the assets in the trust would be stepped-up to their fair market values on your step-mother's date of death. Whether there is any gain on the assets when they are sold depends on the type of assets and the date of death. If the proceeds from the sales are passed through to you then you would report any income, gain or loss on your individual tax return. The trustee will give you a K-1 identifying the types of and taxability of the proceeds.
So, depending on the types of assets and the date of death, there may be little or no income that will be taxable to you.
The assets were comprised of savings accounts, bonds, stock which was liquidated, dryden dividends, and a lincoln financial annuity (liquidated). The date of death was April 2009. The attorney did state that a K-1 would be issued at the end of 2009. I'm just trying to get an idea in order to plan ahead. I am currently among the unemployed and having my own issues.
Thanks for your help