Legal Question in Wills and Trusts in California

Generally, not to the recipient for principle received. If the recipient of funds obtains any of the income from the trust, he or she may be required to pay tax on the portion that was received if those taxes were not paid by the trust. The trust estate,may be required to pay estate taxes if its value is in excess of specific values. Finally, if the recipient inherits something such as a promissory note, there could be tax implications.

It depends on what the proceeds are. I would say generally, yes.