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(1) The trustees may hold meetings. A majority of the
trustees constitutes a quorum for conducting business, “provided
affirmative action may only be had upon a majority vote of the
present TRUSTEES, whether present or absent.”
(2) The trustees may fix and pay compensation to third
parties and to themselves.
(3) The trustees, by unanimous vote, may amend, in whole or
in part, the declaration of trust “to better carry out the
purposes and intent thereof”.
(4) The trustees may consent, unanimously and in writing, to
the transfer of beneficial units in the trust even though the
units were otherwise “non-assessable, non-taxable, non-
negotiable, and non-transferable”.
(5) The trustees may distribute income from the trust in
their absolute discretion.
The Castros were the original trustees of the CCJT and
remained trustees throughout the years at issue.7 During the
years at issue, only petitioner received a fiduciary fee from the
CCJT.
7The parties stipulated that Nelly was an original trustee
of the CCJT and that, when she died in 1996, Steven replaced her
as trustee. That stipulation contradicts other evidence in the
record which tends to show that the Castros were the only
trustees of the CCJT. For example, only the Castros signed the
declaration of trust and are listed in the declaration of trust
as trustees. The Castros were the only people who attended the
first meeting of the trustees and signed the minutes or signed
the CCJT’s tax returns.
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Last modified: May 25, 2011