Estate of Austin Korby - Page 17

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          expenses, and other various expenses.  The amounts were used                
          entirely by Austin and Edna and not by Dennis, who was cotrustee            
          of the general partner and was entitled to half of any management           
          fees.  While the living trust received management fees totaling             
          over $120,000 during the years at issue, the limited partners               
          (who owned 98 percent of KPLP) received only one distribution               
          totaling $12,061, for taxes in 1998.                                        
               Further, no management contract was executed, and the fees             
          were paid at varying times and amounts, as Austin requested them.           
          The purported fees were not based on any regular or prescribed              
          method of payment or computation.  Dennis testified that he                 
          caused KPLP to make payments to the living trust whenever Austin            
          requested them because he was raised not to say no to his father.           
          He stated that he and his father discussed the amounts of the               
          management fees in 1995, and they wrote down the amounts on                 
          “pieces of paper” at the kitchen table.  These notes regarding              
          the purported fees were not produced by the estate at trial.                
               The estate submitted an expert report by Paul R. Kenworthy,            
          C.F.P., in which he opined that money managers generally receive            
          fees of 1 to 1.5 percent of the asset values in the portfolios              
          they manage.  Mr. Kenworthy testified that fees are generally not           
          determined by the income of the portfolio because income amounts            
          vary with different types of investments.                                   

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