Legal Question in Tax Law in California

Re: Taxes not filed from trust disbursement.

This depends on how the distributions from the trust are "characterized". If, when the trust distributes, it is giving you income that it has not paid taxes on, then you need to report the income on your tax return and pay the tax due. If the trust is distributing after tax income (meaning that it already has paid the income tax due on the money) then it is most likely treated as a gift to you and does not require you to file an income tax return. Speak to the trustee and ask them whether you should be filing a return on the distributions. I cannot give you a more likely then not scenario, because both types of distributions are very common.