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names or the name of their living trust only their house, a
vacant lot, bank accounts with a total balance of $7,428, a 1-
percent interest in Crane Properties, a 2-percent interest in
KPLP, and the right to receive Social Security income. KPLP paid
the Korbys’ home expenses after their assets were transferred to
it. In order to pay the Korbys’ other basic living expenses,
KPLP also distributed significant percentages of its income to
the living trust, ranging from 26.7 percent of its income in 1996
to 50.1 percent of its income in 1998, which paid their remaining
expenses. These payments from KPLP to the living trust totaled
at least 52.6 percent of the Korbys’ income in each of the 4
years before they died.
The estate argues that the cash payments that KPLP made to
the living trust and the payments of the Korbys’ home expenses
were management fees paid for Austin’s services as a money
manager for the KPLP assets. The estate further claims that
Austin and Edna were financially able to transfer their income-
producing assets to KPLP because they expected the living trust
to receive management fees that would provide enough income to
them. We do not believe that the payments to the living trust
were management fees. The purported fees amounted to $19,334 to
$38,750 in each of the 4 years before the Korbys died. The
amounts were used by the living trust to pay Edna’s nursing home
costs of over $30,000 per year and the Korbys’ taxes, medical
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