In Re the Tax Appeals of McCormac

This is an appeal brought by Taxpayers-Appellants, Scott McCormac, Vari McKinley and Maytor H. McKinley, Jr., (hereinafter collectively referred to as “appellants”), from a decision and order of the Tax Appeal Court affirming the assessment by the Director of Taxation of net income taxes on amounts disbursed to appellants as beneficiaries of a trust agreement. For the reasons set out below, we affirm.

I

On or about February 26, 1962, Hawaiian Guardian, Ltd. (hereinafter referred to as “Guardian”), 1 was incorporated for the purpose of selling funerals to the public on a pre-need basis.…