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(5) On May 5, 1994, the Castros, as trustees of the CFT,
executed a bill of sale purporting to sell the assets of the
jewelry business to the CCJT for $10 and other consideration.
B. The Operation of the Trusts
The declarations of trust with respect to the CFT and the
CCJT provided in pertinent part as follows:
1. The CFT
The CFT’s declaration of trust described the function and
purpose of the CFT:
THE TRUSTEES purpose shall be authorized to accept
rights, title and interest in and to real and personal
properties, whether tangible or intangible, which have
been conveyed by THE CREATOR HEREOF AND GRANTOR HERETO
to be the CORPUS OF THIS TRUST. Included therein is
the exclusive use of HIS lifetime services and ALL of
HIS EARNED REMUNERATION ACCRUING THEREFROM, from any
current source whatsoever, so that Kevin D. Castro can
maximize HIS lifetime efforts through the utilization
of HIS Constitutional Rights; for the protection of HIS
family in the pursuit of HIS happiness through HIS
desire to promote the general welfare, all of which
Kevin D. Castro feels HE will achieve because they are
sustained by HIS RELIGIOUS BELIEFS.
The declaration of trust divided the beneficial interests in
the trust into 100 units in certificate form. The units were
“non-assessable, non-taxable * * *, non-negotiable, non-
transferable (except back to THE TRUST)”. The declaration of
trust prohibited the trustees from issuing more than the initial
100 units of beneficial interest. In consideration for
petitioner’s contribution of assets and his promise to render
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Last modified: May 25, 2011