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Mushrooms on or around the trunk
Mushrooms at the base of the tree trunk can indicate big problems. They can be the sign of armillaria root rot or other fungi which kill trees (See: armillaria mushroom close-up). Once you see the mushroom like that shown below the decay fungus has established itself inside the roots and trunk.
There is no cure for this but
progression of the disease may be slowed by exposing the root collar to air
by removing soil. Prevent injury to the base of trunks to help prevent this
problem. The conks below is a sign that the trunk is decayed. This tree was
taken down because it was ready to fall over (below photo).
See: more on trunk decay