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authorized the selection of a new trustee by unanimous vote of
the remaining trustees. One week after the CFT was created,
petitioner was appointed a trustee.
On February 11, 1996, Nelly died. On February 14, 1996,
Steven Castro (Steven), petitioner’s brother, replaced Nelly as
trustee.
During the years at issue, only Mrs. Castro received a
fiduciary fee from the CFT.
2. The CCJT
The declaration of trust for the CCJT provides very little
guidance concerning the function and purpose of the CCJT, even
though it directs the trustees to regard it “as their principal
guide”. The declaration of trust summarizes its “purport” as
follows:
THE PURPORT of This Instrument is to convey title to
real & personal property to THE BOARD OF TRUSTEES to
CONSTITUTE A TRUST for the Benefit of THE
BENEFICIARIES, with such title held by THE TRUSTEES,
IN-TRUST in joint tenancy, and as Fiduciaries, with
instructions to maintain & preserve such property, for
the duration hereof, AND to provide for an economical
administration of THE TRUST’S CORPUS, including the
effective management of TRUST BUSINESS, AND to make
distributions of Income and/or Corpus to THE
BENEFICIARIES on a pro-rata basis and in amounts
determined within the discretionary powers of THE
TRUSTEES.
The nature and principle activity of THIS TRUST, is
first and foremost to preserve and maintain assets.
The conducting of business, including the holding of
title to property, with the necessary management and
control of such TRUST property, are such that there may
be attempts by outside concerns, agencies,
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