The taxability of distributions from a trust depends on whether the distribution is classified as income or principal. Income distributions, which consist of earnings generated by the trust's assets, are typically taxable to the beneficiary as ordinary income. Principal distributions, on the other hand, involve the transfer of assets that were already taxed prior to their contribution to the trust and are generally not taxable to the beneficiary. However, the taxation rules may vary based on the type of trust and the beneficiary's individual circumstances, making it essential to consult with a qualified estate planning attorney for personalized guidance.