Since you are a Canadian resident, you have to concern
yourself with both Canadian and U.S. tax issues.

My comments will be confined to Canadian tax implications
only.

1)      No Canadian tax will be payable on the receipt
of capital from the trust; however, if income earned by the estate is received
by you in the same year that it is earned, it may be taxable in Canada.

2)      If there are assets other than cash received by
you, their cost base for Canadian tax purposes will be determined based on
rules contained in subsection 107(2) of the Income
Tax Act. In general terms, this will mean that your cost base will be the “adjusted
cost base” of the assets in the hands of the trust determined based on Canadian tax rules.

  3) You must report your receipt of any assets from the trust to the CRA using form T1142

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