If there is a tax law that someone refuses to follow, then the normal rules are available to the state and to the federal government to enforce collection. If you wish to stage a tax protest lots of luck. You will need more than luck; you will need a miracle.
If you want to have the lowest capital gains tax when you sell it, then you want her to die owning it and inherit it. If you want to have the lowest property tax base, then it does not matter whether you buy it from her or inherit it from her.
There is an unlimited parent-child exclusion as to the principal residence. However, if your brother is giving up his half of the home, then only your half is exempt from reassessment. So, the issue is how the trust reads. If it allows a non-pro rata distribution of assets, your receipt of the home might qualify for the parent-child exclusion. You need a competent lawyer to review the trust and prepare the deed (and potentially fight with the county). Mr. Daymude has given the proper advice.
Mr. Daymude has given a thoughtful answer. A trustee generally has the power to sell assets and divide the proceeds among the beneficiaries unless the trust instrument provides for a distribution of specific assets to the beneficiaries. The other brother should have received notice under Probate Code Sectino 16061.7 that he has 120 days to contest the trust. If he did not receive that, it gives him a certain advantage. In any event, the correct thing is for the non-trustee brother to...
Yes you can report that the 1099 income is yours if it is truly yours. However, the IRS is going to send out a notice when your cousin does not report all of the income reflected on his 1099. Therefore you should (i) work with a competent tax return preparer for both your return and your cousin's and (ii) clean up with PayPal accounts so that this does not occur in the future.
Mr. Smith has given you excellent advice. The IRS would be very interested in finding a taxpayer taking an inconsistent position in civil litigation from the position that the taxpayer is taking with the IRS. However, the defendants in the lawsuit will have no access to the position that the taxpayer is taking with the IRS: tax returns are privileged in state court litigation, so if she lies, you probably won't be able to prove it..
You have to pose your question about taxes in Portugal to a lawyer in Portugal. The 1994 U.S. - Portugal Treaty eliminates double tax on businesses which have a permanent establishment in one of the two signatory countries. But that does not prevent one of the countries from taxing its own citizens.