Estate of Austin Korby - Page 15

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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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