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enjoyment of the assets they transferred to KPLP. The estate
argues that Austin and Edna retained no rights with respect to
the transferred property and that no agreement, express or
implied, existed.
We agree with respondent that an implied agreement existed
between Austin, on his own behalf and on behalf of Edna, and the
four Korby sons that after the assets were transferred to KPLP,
income from the assets would continue to be available to Austin
and Edna for as long as they needed income.7 In 1995, when
Austin and Edna transferred $1,888,704 worth of assets to KPLP,
Edna was living in a nursing home and suffering from severe
dementia. Edna’s nursing home costs were approximately $2,500
per month. Austin had experienced a stroke and had been
diagnosed with various ongoing ailments. It is reasonable to
believe that Austin and Edna expected to incur significant
medical expenses in the future. Austin and Edna reported medical
expenses of over $37,000, approximately double their Social
Security income, in each of the 4 years before they died. It was
clear that the Korbys’ Social Security income would not cover
their basic expenses in the future. Despite their expected
increased expenses, however, Austin and Edna retained in their
7Because we find an implied agreement, we need not decide
whether an express agreement existed that gave Austin and Edna
the possession of, enjoyment of, or right to income from the
transferred assets.
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