I am a Michigan resident and my mother recently passed away. I have been willed a 1/3 of her estate. There is a Discretionary Trust which was set up in 2010 while I was a resident in a Nursing Home. I have recently moved into independent living, but my mother could not get to her law office to change my trust status so I believe that it stands. Her financial advisor, however, called me yesterday and told me that my 1/3 of the life insurance and my 1/3 of the mutual funds will be sent to me directly in check form. Are either one of these taxable in any way? Thank you for your attention.

Apparently not. Read this link. Any investment gains after you receive the money will be taxable.
Michigan Estate Taxes - 2017 Michigan Inheritance Taxes Guide

I believe that, for sure, the LIEF Insurance proceeds will NOT be taxable.

The mutual fund investment gains MAY be taxable at the federal level, but probably. I would have to look at the trust instrumnet to be sure.