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The circumstances leading us to conclude above that the
payments from KPLP to the living trust were not management fees
also weigh against a conclusion that the sale of assets to KPLP
was bona fide. The Korbys’ use of KPLP income for basic living
expenses is inconsistent with a finding of a bona fide transfer.
By drafting the KPLP agreement to allow the living trust to
determine the amounts of its purported fees as general partner
and by making Dennis, with whom Austin had an implied agreement,
his cotrustee, Austin ensured that he and Edna would be provided
with sufficient income from the KPLP assets during their
lifetimes.
The estate argues that the creation of KPLP was bona fide
because Austin and Edna created KPLP to protect the family from
commercial and personal injury liability resulting from their
bridge-building business, as well as liability arising from
divorce. The estate points to provisions in the KPLP agreement
that prevented any partner from unilaterally forcing a
distribution of partnership property and restricted transfer of
the limited partnership interests. However, the estate has not
shown that the terms of the KPLP agreement would prevent a
creditor of a partner from obtaining that partner’s KPLP interest
in an involuntary transfer. The limited protection KPLP gave the
family and the other evidence in the record lead us to believe
that credit protection was not a significant reason for forming
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