Legal Question in Wills and Trusts in California

My best guess is that Hubby gets $60K nontaxable and Mom's estate pays any estate tax. Consult your tax advisor.

Inheritance taxes are paid by the estate for the person who died, so you will not be responsible for any "inheritance" taxes. However, depending on how long the money has been held in trust and how it was held there can sometimes be capital gains taxes that need to be paid, but if the trust is sending you cash then presumably the trust has accounted for any such liabilities. The best thing to do is ask the Trustee directly.

Any taxes that are due should be paid by your mother-in-estate prior to distribution of assets to the beneficiaries. As a beneficiary, your husband is not responsible for any such taxes. The inheritance is not considered income and should not be reported as such on your income tax return.