Kevin D. Castro and Margarita C. Castro, et al. - Page 8




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          lifetime services and any attendant remuneration to the CFT,                
          petitioner received all 100 units of beneficial interest.                   
               The CFT’s declaration of trust conferred on its trustees               
          broad authority to administer the trust.  A majority of the                 
          trustees constituted a quorum, and a majority vote of all                   
          trustees was all that was required to authorize expenditures,               
          including the payment of compensation to the trustees.  The                 
          declaration of trust authorized the trustees to supplement the              
          trust instrument; a majority of the trustees then in office and             
          participating in the meeting needed only to adopt a resolution to           
          effect the change.  The declaration of trust also provided that             
          “A Minute of Resolution of THE BOARD OF TRUSTEES authorizing what           
          it is they determine to do or have done shall be evidence that              
          such an act is within their power.”                                         
               Under its declaration of trust, the CFT had a term of 25               
          years.  The trustees, however, could liquidate the CFT by                   
          unanimous vote at any time “because of threatened depreciation in           
          values, or other good and sufficient reason”.  Upon liquidation,            
          the assets of the CFT were to be distributed pro rata to those              
          persons having possession of the units of beneficial interest.              
          During the CFT’s existence, distribution of trust income was in             
          the trustees’ discretion.                                                   
               The original trustees of the CFT were Mrs. Castro and Nelly            
          Castro (Nelly), petitioner’s mother.  The declaration of trust              






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