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The estate argues that the cash payments that KPLP made to
the living trust and the payments of the Korbys’ home expenses
were management fees paid for Austin’s services as a money
manager for the KPLP assets. The estate further claims that
Austin and Edna were financially able to transfer their income-
producing assets to KPLP because they expected the living trust
to receive management fees that would provide enough income to
them. We do not believe that the payments to the living trust
were management fees. The purported fees amounted to $19,334 to
$38,750 in each of the 4 years before the Korbys died. The
amounts were used by the living trust to pay Edna’s nursing home
costs of over $30,000 per year and the Korbys’ taxes, medical
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
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