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interests were valued at $521,870 and the Crane Properties
interests were valued at $78,160, for a total gift of $600,030.
After 1995, KPLP maintained five investment accounts at
various investment companies and a checking account. Dividends
and interest earned on the investment accounts were deposited
into the checking account. KPLP’s checking account was also used
to pay KPLP’s expenses. Austin and Dennis were the only
signatories on the checking account. In August 1995, Austin
purchased an annuity from LifeUSA Insurance Co. for $140,000.
Austin named himself as the annuitant and KPLP as the owner on
the annuity application. The annuity entitled Austin to payments
after the annuity date, September 5, 2005, for a 10-year period
as long as he was living. If Austin died during the 10-year
period, the payments would continue to his sons as irrevocable
beneficiaries. Austin’s sons were also entitled to a death
benefit if Austin died before the annuity date.
As stated above, the Korbys transferred their house to the
living trust in 1995, and Austin lived in the house until 1998.
From 1995 through 1998, KPLP and the living trust paid many of
the Korbys’ household expenses. The living trust made payments
to Edna’s nursing home, various drug stores, other miscellaneous
stores, and the Internal Revenue Service (IRS). The living trust
also made occasional cash payments to Austin. To pay all these
expenses, the living trust received cash payments from KPLP and
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Last modified: May 25, 2011