INHERITANCE AND ESTATE TAXES

KRS tit. XI, ch. 140

in effect

KRS 140.010 Levy of inheritance tax -- Property affected -- When tax attaches

140.010. Levy of inheritance tax -- Property affected -- When tax attaches All real and personal property within the jurisdiction of this state and any interest therein belonging to inhabitants of this state, all tangible personal property wherever situated belonging to inhabitants of this state that has not acquired a situs for purposes of taxation outside of this state, all intangible property belonging to persons domiciled in this state except partnership property located in another state which is subject to an inheritance or estate tax in that state, all intangible property belonging to nonresidents that has acquired a business situs in this state, all real property or interest therein within this state and all tangible personal property that has acquired a situs in this state and is not taxable elsewhere belonging to persons who are not inhabitants of this state, which shall pass by will or by the laws regulating intestate succession, or by deed, grant, bargain, sale or gift made in contemplation of death or made or intended to take effect in possession or enjoyment at or after the death of the grantor or donor, absolutely or in trust, to any person or to any body politic or corporate, in trust or otherwise, or by reason whereof any person or body politic or corporate shall become beneficially entitled in possession or expectancy to any property or to the income thereof, is subject to a tax upon the fair cash value as of the date of the death of the grantor or donor of the property in excess of the exemptions granted and at the rates prescribed in this chapter. This tax shall be imposed when any such person or corporation becomes beneficially entitled in possession or expectancy to any property or the income thereof by any such transfer. History: Amended 1970 Ky. Acts ch. 21, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-12.

KRS 140.015 Exemption of benefits from federal government arising out of military service

140.015. Exemption of benefits from federal government arising out of military service (1) The payment of any gratuity pay, death compensation or other award or benefit, by the federal government, to the surviving spouse or heirs of any person by reason or arising out of service by such person in the Armed Forces of the United States in time of war shall not be considered a taxable transfer within the meaning of this chapter, and the amount paid shall not be considered in determining the value of any taxable transfer. (2) Payments made to a beneficiary of the retired serviceman's family protection plan or survivor benefit plan shall not be considered a taxable transfer within the meaning of this chapter, and the amount paid shall not be considered in determining the value of any taxable transfer. Effective: July 15, 1980 History: Amended 1980 Ky. Acts ch. 403, sec. 1, effective July 15, 1980. -- Created 1944 Ky. Acts ch. 34, sec. 2.

KRS 140.020 Taxation of transfers made in contemplation of death -- Revocable trusts -- Presumption of contemplation -- When presumption does not apply

140.020. Taxation of transfers made in contemplation of death -- Revocable trusts -- Presumption of contemplation -- When presumption does not apply (1) The terms of this chapter shall apply to any property or interest therein, of which the decedent has made a transfer by trust or otherwise, in contemplation of or intended to take effect in possession or enjoyment at or after death, including a transfer under which the transferor has retained for his life or any period not ending before his death (a) the possession or enjoyment of, or the income from the property; or (b) the actual or contingent power to designate the persons who shall possess the property or the income therefrom, except in the case of a bona fide sale for an adequate and full consideration in money or money's worth. It shall further apply to any property conveyed in trust over which the settlor has a power of revocation exercisable by will. (2) Every transfer made within three (3) years prior to the death of the grantor, vendor or donor of a material part of his estate, or in the nature of a final disposition or distribution thereof, and without an adequate valuable consideration, shall be construed prima facie to have been made in contemplation of death within the meaning of this chapter. If a transfer was made more than three (3) years prior to the death of the decedent it shall be a question of fact, to be determined by the proper tribunal, whether the transfer was made in contemplation of death. (3) There shall be no presumption of contemplation of death as to certificates of deposit jointly owned and all such certificates of deposit shall be taxed pursuant to KRS 140.050. Effective: July 15, 1982 History: Amended 1982 Ky. Acts ch. 387, sec. 6, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 170, sec. 1, effective June 17, 1978. -- Amended 1942 Ky. Acts ch. 204, sec. 2. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281a-13, 4281a-17. Legislative Research Commission Note. Although this section was included in Acts 1982 ch. 387 as being amended, the changed wording was deleted by House Floor Amendment.

KRS 140.030 Taxation of contracts in contemplation of death -- Proceeds of life insurance policies -- Exemptions

140.030. Taxation of contracts in contemplation of death -- Proceeds of life insurance policies -- Exemptions (1) If it appears, either from the will of the decedent or from extrinsic evidence, that an obligation of a contractual nature exists in favor of any person payable at or after death of the decedent, the sum so payable shall be treated for the purposes of this chapter as a taxable transfer, unless it affirmatively appears by competent evidence that a consideration substantially equivalent in value to the amount due under the contract was paid or furnished by or for the other party thereto during the life of the decedent. (2) The proceeds payable under any life insurance policy on the death of the assured (other than a United States government life insurance policy or national service life insurance policy issued by or through the federal government), payable to the assured or his estate, shall be taxable as a part of the legacy as a distributable share of the beneficiary. The proceeds of an insurance policy payable to a designated beneficiary, including a testamentary or inter vivos trustee, other than the assured or his estate, shall be tax-free. The proceeds payable under any United States government life insurance policy or national service life insurance policy issued by or through the federal government, whether payable to a designated beneficiary or to the assured or his estate, and any pension or annuity payments made or to be made to the surviving spouse of an employee of a railroad or other carrier under the Federal Railroad Retirement Act of 1935 as amended, shall be tax-free, and shall not be considered in determining the value of any taxable transfer. History: Amended 1974 Ky. Acts ch. 386, sec. 26. -- Amended 1970 Ky. Acts ch. 34, sec. 1. -- Amended 1954 Ky. Acts ch. 131, sec. 1, effective July 1, 1956. -- Amended 1950 Ky. Acts ch. 146, sec. 1. -- Amended 1948 Ky. Acts ch. 96, sec. 7a. -- Amended 1944 Ky. Acts ch. 34, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-16.

KRS 140.040 Taxation of transfers by power of appointment -- When transfer deemed to take place -- Date as of which value of property determined -- Remainder interests -- Rates and exemptions

140.040. Taxation of transfers by power of appointment -- When transfer deemed to take place -- Date as of which value of property determined -- Remainder interests -- Rates and exemptions (1) As used in this section, "power of appointment": (a) Means only a general power of appointment that may be exercised in favor of: 1. The individual holding the power of appointment; 2. That individual's estate; 3. That individual's creditors; or 4. The creditors of that individual's estate; (b) Does not include a power that is: 1. Limited by an ascertainable standard relating to the health, education, maintenance, and support of the individual holding the power of appointment; or 2. Exercisable only by the individual holding the power of appointment in conjunction with another person having a substantial interest in the property subject to the power of appointment which is adverse to the exercise in favor of: a. The individual holding the power of appointment; b. That individual's estate; c. That individual's creditors; or d. The creditors of that individual's estate; and (c) Shall be administered by the Department of Revenue as nearly as practicable identical to a general power of app ointment as defined in 26 U.S.C. sec. 2041(b). (2) (a) Whenever any person exercises a power of appointment derived from any disposition of property: 1. Whether by will, deed, trust agreement, contract, insurance policy or other instrument; and 2. Regardless of when the person exercises the power of appointment; the power of appointment shall be deemed a transfer taxable under the provisions of this chapter in the same manner as though the property to which the appointment relates belonged absolutely to th e donee of the power and had been bequeathed or devised by the donee by will. (b) Whenever any person possessing a power of appointment omits or fails to exercise the power of appointment, in whole or in part, within the time provided therefor, a transfer taxable under the provisions of this chapter shall be deemed to take place to the person receiving the property as a result of the omission or failure to the same extent that the property would have been subject to taxation if it had passed under the will of the donee. (c) The time at which a transfer shall be deemed to take place, for the purpose of taxation, shall be governed by the provisions of subsections (3) to (5) of this section. (3) (a) In the case of a power of appointment which passes to the donee at the death of the donor, under any instrument: 1. The transfer shall be deemed to take place, for the purpose of taxation, at the time of the death of the donor; 2. The assessment shall be made at that time against the life interest of the donee and the remainder against the corpus; 3. The value of the property shall be determined as of the date of the death of the donor; 4. The donee of the property shall be taxed at the rates and be subject to the exemptions in effect at the death of the donor; and 5. The determination of the applicable rates and exemptions, in effect at the death of the donor, shall be governed by the relationship of the beneficiary to the donee of the power of appointment. (b) In the event the payment of the tax at the death of the donor should operate to provide an exemption for any beneficiary of a donee not authorized by KRS 140.080, then the exemption shall be retrospectively disallowed at the time of the death of the donee. (c) The remainder interest passing under the donee's power of appointment, whether exercised or not, shall be added to and made a part of the distributable share of the donee's estate for the purpose of determining the applicable exemption and rates. (4) In all cases other than that described in subsection (3) of this section: (a) The transfer shall be deemed to take place, for the purpose of taxation, at the time of the death of the donee; (b) The value of the property to which the power of appointment relates shall be determined as of the date of the death of the donee and shall be taxed at the rates and be subject to the exemptions in effect at the death of the donee; and (c) The determination of the applicable rates and exemptions, in effect at the death of the donee, shall be governed by the relationship of the beneficiary to the donee of the power of appointment. (5) (a) The provisions of subsection (3) of this section shall not preclude the taxation, at the death of the donee, of any transfer made by means of a power of appointment if the transfer was not in fact reported to or a tax assessed by the Department of Revenue within the period of limitation prescribed by KRS 140.160. (b) If the transfer by the power of appointment is not reported or a tax is not assessed, the period of limitation prescribed in KRS 140.160 shall not begin to run until the death of the donee of the power of appointment. Effective: July 15, 2024 History: Amended 2024 Ky. Acts ch. 166, sec. 35, effective July 15, 2024. -- Amended 2005 Ky. Acts ch. 85, sec. 452, effective June 20, 2005. -- Amended 1948 Ky. Acts ch. 96, sec. 8. -- Amended 1942 Ky. Acts ch. 204, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-14.

KRS 140.050 Taxation of surviving owner of a joint interest

140.050. Taxation of surviving owner of a joint interest Whenever any real or personal property is held jointly in the names of two (2) or more persons, or as tenants by the entirety, or is deposited in banks or other depositories jointly in the names of two (2) or more persons and is payable to either or to the survivor upon the death of the other, the right of the surviving tenant by the entirety or the surviving joint tenant or joint depositor to the immediate ownership or possession and enjoyment of the property shall be deemed a transfer of one-half (1/2) or other proper fraction thereof, taxable under the provisions of this chapter in the same manner as though the part of the property to which the transfer relates belonged to the tenants by the entirety, joint tenants or joint depositors as tenants in common, and had been bequeathed or devised to the surviving tenant by the entirety, joint tenant or joint depositor by the deceased tenant by the entirety, joint tenant or joint depositor. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-15.

KRS 140.055 Repealed, 1990

140.055. Repealed, 1990 Catchline at repeal: Taxation of surviving co-owner of government bond or similar evidence of indebtedness. History: Repealed 1990 Ky. Acts ch. 142, sec. 5, effective July 13, 1990. -- Created 1948 Ky. Acts ch. 96, sec. 9.

KRS 140.060 Exemption of transfers to educational, religious and charitable institutions, and to cities and public institutions

140.060. Exemption of transfers to educational, religious and charitable institutions, and to cities and public institutions All transfers to educational, religious or other institutions, societies, or associations, whose sole object and purpose are to carry on charitable, educational, or religious work, all transfers for or upon trust for any charitable, educational, or religious purpose, and all transfers to cities, and towns or public institutions in this state for public purposes shall be exempt from the tax imposed by this chapter. But no such corporation or association shall be entitled to such exemption if any officer, member, stockholder or employee thereof shall receive or may be lawfully entitled to receive any pecuniary profit from the operations thereof, except reasonable compensation for services in effecting one or more of such purposes or as proper beneficiary of its strictly charitable purpose; or if the organization thereof, for any such avowed purpose, be a guise or pretense for directly or indirectly making any other pecuniary profit for such corporation or association, or for any of its members or employees, or if it be not in good faith organized or conducted exclusively for one or more of such purposes. Effective: June 17, 1954 History: Amended 1954 Ky. Acts ch. 55, sec. 1, effective June 17, 1954. -- Amended 1942 Ky. Acts ch. 204, sec. 3. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-18.

KRS 140.063 Exemption of annuities or other payments under employees' trusts -- Retirement annuities -- Individual retirement bonds, accounts, and annuities

140.063. Exemption of annuities or other payments under employees' trusts -- Retirement annuities -- Individual retirement bonds, accounts, and annuities (1) There shall be excluded from taxation under KRS Chapter 140, to the extent attributable to employer's contributions, the value of an annuity or other payment receivable by any beneficiary (other than the executor or equivalent) under: (a) An employee's trust (or under a contract purchased by an employee's trust) forming a part of a pension, stock bonus, or profit-sharing plan which, at the time of the decedent's separation from employment (whether by death or otherwise), or at the time of termination of the plan if earlier, met the requirements of Section 401(a) of the Internal Revenue Code; or (b) A retirement annuity contract purchased by an employer (and not by an employee's trust) pursuant to a plan which, at the time of decedent's separation from employment (by death or otherwise), or at the time of termination of the plan if earlier, was a plan described in Section 403(a) of the Internal Revenue Code; or (c) A retirement annuity contract purchased for an employee by an employer which is an organization referred to in Section 170(b)(1)(A)(ii) or (vi) of the Internal Revenue Code, or which is a religious organization (other than a trust), and which is exempt from tax under Section 501(a) of the Internal Revenue Code; or (d) Chapter 73 of Title 10 of the United States Code. (2) If amounts payable after the death of the decedent under a plan described in paragraph (a) or (b) of subsection (1) of this section, under a contract described in paragraph (c) of subsection (1) of this section, or under Chapter 73 of Title 10 of the United States Code are attributable to any extent to payments or contributions made by the decedent, no exclusion shall be allowed for that part of the value of such amounts in the proportion that the total payments or contributions made by the decedent bears to the total payments or contributions made. For purposes of this subsection, contributions or payments made by the decedent's employer or former employer under a trust or plan described in paragraph (a) or (b) of subsection (1) of this section shall not be considered to be contributed by the decedent, and contributions or payments made by the decedent's employer or former employer toward the purchase of an annuity contract described in paragraph (c) of subsection (1) of this section shall, to the extent excludable from gross income under Section 403(b) of the Internal Revenue Code, not be considered to be contributed by the decedent. This subsection shall apply to all decedents dying after December 31, 1953. For purposes of this subsection, contributions or payments on behalf of the decedent while he was an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code made under a trust or plan described in paragraph (a) or (b) of subsection (1) of this section shall, to the extent allowable as a deduction under Section 404 of the Internal Revenue Code, be considered to be made by a person other than the decedent and, to the extent not so allowable shall be considered to be contributions or payments made by the decedent. For purposes of this subsection, amounts payable under Chapter 73 of Title 10 of the United States Code are attributable to payments or contributions made by the decedent only to the extent of amounts deposited by him pursuant to Section 1438 or 1452(d) of such Title 10. This subsection shall apply to all decedents dying after January 1, 1972. (3) There shall be excluded from taxation under KRS Chapter 140 the value of an annuity receivable by any beneficiary (other than the executor) under: (a) An individual retirement account described in Section 408(a) of the Internal Revenue Code. (b) An individual retirement annuity described in Section 408(b) of the Internal Revenue Code. (c) A retirement bond described in Section 409(a) of the Internal Revenue Code. (4) If any payment to an account described in paragraph (a) of subsection (3) of this section or for an annuity described in paragraph (b) of subsection (3) of this section or a bond described in paragraph (c) of subsection (3) of this section was not allowable as a deduction under Section 219 or 220 of the Internal Revenue Code and was not a rollover contribution described in Section 402(a)(5), 403(a)(4), Section 403(b)(8) (but only to the extent such contribution is attributable to a distribution from a contract described in subsection 408(c)(3)), 408(d)(3), or 409(b)(3)(C) of the Internal Revenue Code, the preceding sentence shall not apply to that portion of the value of the amount receivable under such account, annuity, or bond (as the case may be) which bears the same ratio to the total value of the amount so receivable as the total amount which was paid to or for such account, annuity, or bond and which was not allowable as a deduction under Section 219 or 220 of the Internal Revenue Code and was not such a rollover contribution bears to the total amount paid to or for such account, annuity, or bond. For purposes of this subsection, the term "annuity" means an annuity contract or other arrangement providing for a series of substantially equal periodic payments to be made to a beneficiary (other than the executor) for his life or over a period extending for at least thirty-six (36) months after the date of the decedent's death. (5) Except to the extent required by differences between KRS Chapter 140 and its application and the federal estate tax law and its application, the relevant Internal Revenue Code regulations and the relevant administrative and judicial interpretations of the federal estate tax law shall be as nearly as practicable adopted and followed in the application of this section. (6) For the purposes of this section the term "Internal Revenue Code" shall mean the Internal Revenue Code as amended through December 31, 1980. Effective: July 15, 1982 History: Amended 1982 Ky. Acts ch. 387, sec. 7, effective July 15, 1982. -- Created 1974 Ky. Acts ch. 141, sec. 1.

KRS 140.064 Repealed, 2000

140.064. Repealed, 2000 Catchline at repeal: Exemption of $7,500 received by surviving spouse or surviving children from testator's estate. History: Repealed 2000 Ky. Acts ch. 151, sec. 7, effective July 14, 2000. -- Created 1984 Ky. Acts ch. 399, sec. 1, effective July 13, 1984.

KRS 140.065 Repealed, 1978

140.065. Repealed, 1978 Catchline at repeal: Estates of three million dollars or more subject only to estate tax. History: Repealed 1978 Ky. Acts ch. 233, sec. 6, effective June 17, 1978. -- Amended 1966 Ky. Acts ch. 187, Part V, sec. 1. -- Created 1948 Ky. Acts ch. 96, sec. 2.

KRS 140.070 Inheritance tax rates

140.070. Inheritance tax rates The tax upon transfers of property as defined in the preceding sections of this chapter shall be at the following rates: (1) Class A. In case the transfer is to or for the benefit of a parent, surviving spouse, child by blood, stepchild, child adopted during infancy, child adopted during adulthood who was reared by the decedent during infancy or a grandchild who is the issue of a child by blood, the issue of a stepchild, the issue of a child adopted during adulthood who was reared by the decedent during infancy, the issue of a child adopted during infancy, nephew, niece, or a nephew or niece of the half blood, brother, sister, or brother or sister of the half blood, the tax shall be subject to the provisions of KRS 140.080. (2) Class B. In case the transfer is to or for the benefit of a daughter-in-law, son-in-law, aunt or uncle, or a great-grandchild who is the grandchild of a child by blood, of a stepchild or of a child adopted during infancy, the tax, subject to the provisions of KRS 140.080, shall be: On its value not exceeding $10,000 .............................................................. 4% On its value exceeding $10,000, but not exceeding $20,000 ....................... 5% On its value exceeding $20,000, but not exceeding $30,000 ....................... 6% On its value exceeding $30,000, but not exceeding $45,000 ....................... 8% On its value exceeding $45,000, but not exceeding $60,000 ..................... 10% On its value exceeding $60,000, but not exceeding $100,000 ................... 12% On its value exceeding $100,000, but not exceeding $200,000 ................. 14% On its value exceeding $200,000 ................................................................ 16% (3) Class C. In case the transfer is to or for the benefit of any educational, religious, or other institutions, societies, or associations, or to any cities, towns, or public institutions not exempted by KRS 140.060, or to any person not included in either Class A or Class B, the tax, subject to the provisions of KRS 140.080, shall be: On its value not exceeding $10,000 .............................................................. 6% On its value exceeding $10,000, but not exceeding $20,000 ....................... 8% On its value exceeding $20,000, but not exceeding $30,000 ..................... 10% On its value exceeding $30,000, but not exceeding $45,000 ..................... 12% On its value exceeding $45,000, but not exceeding $60,000 ................... . 14% On its value exceeding $60,000 ........................................ ......................... 16% Effective: April 27, 2026 History: Amended 2026 Ky. Acts ch. 198, sec. 40, effective April 27, 2026. -- Amended 1995 (2d Extra. Sess.) Ky. Acts ch. 2, sec. 1, effective July 1, 1995. -- Amended 1990 Ky. Acts ch. 31, sec. 1, effective July 13, 1990; and ch. 142, sec. 1, effective July 13, 1990. -- Amended 1978 Ky. Acts ch. 138, sec. 1, effective June 17, 1978. -- Amended 1948 Ky. Acts ch. 96, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-19. Legislative Research Commission Note (4/27/2026). 2026 Ky. Acts ch. 198, sec. 68, provides that the amendments to KRS 140.070 in 2026 Ky. Acts ch. 198, sec. 40, apply to estates of decedents who died on or after January 1, 2026.

KRS 140.080 Exemptions of inheritable interests

140.080. Exemptions of inheritable interests (1) The following exemptions chargeable against the lowest bracket or brackets of inheritable interests shall be free from any tax under the preceding provisions of this chapter: (a) Surviving spouse, total inheritable interest. Effective as to decedents dying after August 1, 1985, notwithstanding anything in this chapter to the contrary, if the decedent's personal representative (or trustee or transferee, absent a personal representative) shall so elect, the spouse's inheritable interest shall include the entire value of any trust or life estate which is in a form that qualifies for the federal estate tax marital deductions under 26 U.S.C. sec. 2056(b)(5) or (7), as amended through December 31, 1984, regardless of whether or not the federal estate tax marital deduction is elected by the decedent's personal representative. To be valid, the election referred to in the sentence immediately preceding must be made in the form prescribed by the Department of Revenue and must be filed on or before the due date of the tax return, including extensions, or with the first tax return filed, whichever last occurs; (b) Class A beneficiaries, as defined in KRS 140.070, total inheritable interest; (c) All persons of Class B, under KRS 140.070, $1,000; and (d) All persons of Class C, under KRS 140.070, $500. (2) If the decedent was not a resident of this state, the exemption shall be the same proportion of the allowable exemption in the case of residents that the property taxable by this state bears to the whole property transferred by the decedent. Effective: April 27, 2026 History: Amended 2026 Ky. Acts ch. 198, sec. 41, effective April 27, 2026. -- Amended 2005 Ky. Acts ch. 85, sec. 453, effective June 20, 2005. -- Amended 1995 (2d Extra. Sess.) Ky. Acts ch. 2, sec. 2, effective July 1, 1995. -- Amended 1990 Ky. Acts ch. 31, sec. 2, effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 458, sec. 1, effective July 15, 1986. -- Amended 1985 (1st Extra. Sess.) Ky. Acts ch. 6, Pt. IV, sec. 12, effective August 1, 1985. -- Amended 1982 Ky. Acts ch. 141, sec. 61, effective July 1, 1982. -- Amended 1978 Ky. Acts ch. 138, sec. 2, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 77, Pt. II, sec. 1. -- Amended 1960 Ky. Acts ch. 117, sec. 1, effective June 16, 1960. -- Amended 1948 Ky. Acts ch. 96, sec. 3. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-20. Legislative Research Commission Note (4/27/2026). 2026 Ky. Acts ch. 198, sec. 68, provides that the amendments to KRS 140.080 in 2026 Ky. Acts ch. 198, sec. 41, apply to estates of decedents who died on or after January 1, 2026. Legislative Research Commission Note. 1985 Acts, Ex. Sess., ch. 6, Part IV, Section 13, directed that the provisions of this section shall be effective for persons dying on or after 8/1/85. Note: 1980 Ky. Acts ch. 396, sec. 66 would have amended this section effective July 1, 1982. However, 1980 Ky. Acts ch. 396 was repealed by 1982 Ky. Acts ch. 141, sec. 146, also effective July 1, 1982.

KRS 140.090 Deductions allowed from distributive shares

140.090. Deductions allowed from distributive shares (1) In calculating the value of the distributive shares the following deductions and no others shall be allowed: (a) Debts of the decedent, except debts secured by property not subject to the tax jurisdiction of Kentucky; and except debts barred by the statute of limitations; (b) Taxes accrued and unpaid, except those on property not subject to the tax jurisdiction of Kentucky; (c) Death duties paid to foreign countries; (d) Federal estate taxes, in the proportion which the net estate in Kentucky subject to federal estate taxes bears to the total net estate everywhere subject to federal estate taxes; all calculations are subject to approval by the Department of Revenue; (e) Drainage, street, or other special assessments due and unpaid which are a lien on said property; (f) Funeral, monument, and cemetery lot maintenance expenses actually paid not exceeding in total five thousand dollars ($5,000); (g) Commission of executors and administrators in the amount actually allowed and paid; (h) Cost of administration, including attorney's fees actually allowed and paid. (2) Notwithstanding the provisions of KRS 404.040, the debts of a deceased wife, subject to the exception in subsection (1)(a), shall be allowed in calculating the distributive shares of her estate for purposes of this chapter, provided such debts are paid from the proceeds of her estate. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 454, effective June 20, 2005. -- Amended 1990 Ky. Acts ch. 142, sec. 2, effective July 13, 1990. -- Amended 1976 Ky. Acts ch. 155, sec. 25. -- Amended 1974 Ky. Acts ch. 86, sec. 1. -- Amended 1948 Ky. Acts ch. 96, secs. 4 and 12. -- Amended 1942 Ky. Acts ch. 204, sec. 5. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-22.

KRS 140.095 Credit in case same property passes again within five years

140.095. Credit in case same property passes again within five years (1) As used in this section the word "transfer" means a taxable transfer under the provisions of KRS Chapter 140. (2) Subject to the provisions of this section, any person to whom property is transferred shall be allowed a credit against the tax imposed by KRS 140.070, if the property was transferred to the immediate decedent within five (5) years prior to the death of the immediate decedent and a tax paid on the prior transfer under the provisions of KRS Chapter 140. To be entitled to such tax credit, the person claiming it shall identify the property as having been so transferred and taxed or identify the property as having been acquired in exchange for property so transferred and taxed. (3) The tax credit shall be computed by allocating to that part of the previously taxed property, which is the subject of the immediate transfer, the proportionate part of the tax paid on the prior transfer as the present value of the previously taxed property transferred to the immediate beneficiary or distributee bears to the total present value of all the property received by the immediate decedent from the prior decedent which is transferred to all the immediate beneficiaries or distributees. Provided, however, that the tax credit shall not exceed an amount equal to such proportion of the total tax due on all property transferred to the immediate beneficiary or distributee from the immediate decedent (computed before any tax credit is applied) as the present value of the previously taxed property transferred to the immediate beneficiary or distributee from the immediate decedent bears to the present value (including any exemption allowed) of all property transferred to the immediate beneficiary or distributee from the immediate decedent. If the estate of the immediate decedent consists in part of property not previously transferred and taxed as described in subsection (2), it shall be presumed for the purpose of this subsection, unless the contrary clearly appears, that each distributive share of the entire estate includes the same proportion of the previously taxed property as the entire value of each share bears to the aggregate value of all the entire shares. History: Created 1948 Ky. Acts ch. 96, sec. 5.

KRS 140.100 Valuation of future and contingent estates -- Taxation of life estates -- Valuation of surviving spouse's interest in trust or life estate

140.100. Valuation of future and contingent estates -- Taxation of life estates -- Valuation of surviving spouse's interest in trust or life estate (1) The Department of Insurance, on the application of the Department of Revenue, shall determine, and certify in duplicate to the department, the value of any future or contingent estate, income or interest therein, limited, contingent, dependent, or determinable upon the lives of persons in being, upon the facts contained in the application or other facts submitted by the department. No fee shall be charged by the Department of Insurance for this service. The certificate shall be competent evidence that the method of computation therein is correct. (2) The value of every future, contingent, or limited estate, income, or interest for the purpose of this chapter shall be determined by the rules, methods, and standards of mortality and of value prescribed by the appropriate United States life mortality tables for ascertaining the value of life estates, annuities, and remainder interests except that the rate of interest assessed in computing the present value of all future interests and contingencies shall be four percent (4%) per annum. (3) When an annuity or a life estate is terminated by the death of the annuitant or life tenant, and the tax upon such interest has not been fixed and determined, the value of the interest for the purpose of taxation shall be that amount of the annuity or income actually paid or payable to the annuitant or life tenant during the period for which the annuitant or life tenant was entitled to the annuity or was in possession of the life estate. The tax on such annuities and life interests shall be payable out of the corpus of the estate, unless otherwise provided under the terms of the will. (4) Notwithstanding anything in this chapter to the contrary, the value of a surviving spouse's interest in a trust or life estate which was exempt from Kentucky inheritance tax in the first spouse's estate pursuant to an election made under KRS 140.080(1)(a) shall be deemed to be equal to the entire value of the property held in the trust or life estate, at the surviving spouse's death, for Kentucky inheritance tax purposes in the surviving spouse's estate. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 110, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 85, sec. 455, effective June 20, 2005. -- Amended 1986 Ky. Acts ch. 458, sec. 2, effective July 15, 1986. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281a-25, 4281a-26.

KRS 140.110 Taxation of contingent and defeasible estates

140.110. Taxation of contingent and defeasible estates (1) In the case of estates in expectancy which are contingent or defeasible, a tax shall be levied at the rate which, on the happening of the most probable contingencies or conditions named in the will, deed, trust agreement, contract, insurance policy, or other instrument, would be applicable under the provisions of this chapter. Moneys so collected shall be distributed as are other inheritance tax funds. If the property so taxed shall ultimately vest in possession in persons taxable at a lower rate, or in a person or a corporation exempt from taxation by this chapter, upon application by such beneficiary to the Department of Revenue for refund of any excess tax, the Department of Revenue, after investigation, shall certify to the Finance and Administration Cabinet the amount of such refund. The Finance and Administration Cabinet shall refund such excess payment of tax in the same manner as other refunds are made. (2) Where an estate or interest can be divested by the act or omission of the legatee or devisee, it shall be taxed as if there were no possibility of divesting. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 456, effective June 20, 2005. -- Amended 1948 Ky. Acts ch. 96, sec. 10. -- Amended 1942 Ky. Acts ch. 204, sec. 6. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281a-23, 4281a-24.

KRS 140.120 Taxation of gifts to fiduciaries

140.120. Taxation of gifts to fiduciaries If a testator bequeaths or devises property to one (1) or more personal representatives or trustees in lieu of their commissions or allowances, or makes them his legatees to an amount exceeding the commissions or allowances prescribed by law, the excess in value of property so bequeathed or devised above the amount of commissions or allowances prescribed by law in similar cases shall be taxable. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-27.

KRS 140.130 Levy of estate tax -- Computation -- Payment -- Administration

140.130. Levy of estate tax -- Computation -- Payment -- Administration (1) In addition to the inheritance tax hereinbefore imposed, an estate tax is hereby levied on all estates equal to the amount by which the credits for state death taxes allowable under the federal tax law exceeds the tax levied under KRS 140.010, less the discount allowed under KRS 140.210, if taken by the taxpayer. Said tax shall be payable at the same time and in the same manner as the inheritance taxes levied by this chapter. (2) In the case of resident decedents and nonresident decedents over part of whose estates Kentucky has tax jurisdiction the estate tax shall be computed as follows: (a) The ratio which that part of the net estate over which Kentucky has jurisdiction for estate tax purposes bears to the total net estate wherever located shall be ascertained. (b) The total maximum offset for state succession taxes allowed under the provisions of the federal estate tax law shall be multiplied by the ascertained ratio to determine the offset allocable to this state. (c) The estate tax levied by this section shall equal the amount, if any, by which the offset allocable to this state shall exceed the inheritance taxes under KRS 140.010, less the discount allowed under KRS 140.210, if taken by the taxpayer. (3) All administrative provisions of this chapter, to the extent that they are applicable, shall be available for the enforcement of this section and KRS 140.140. History: Amended 1942 Ky. Acts ch. 204, sec. 7. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281a-28, 4281a-30.

KRS 140.140 Payment of estate tax under protest -- Action to recover -- Refund

140.140. Payment of estate tax under protest -- Action to recover -- Refund (1) No suit shall be maintained in any court to restrain or delay the collection or payment of the tax levied by KRS 140.130. The aggrieved taxpayer shall pay the tax under protest as and when required, and may at any time within two (2) years from the date of such payment sue the state through the Finance and Administration Cabinet, in an action at law in any state or federal court having jurisdiction of the parties and subject matter, for the recovery of the tax paid with legal interest thereon from the date of payment. (2) If it is finally determined that the tax or any part thereof was wrongfully collected for any reason the Finance and Administration Cabinet shall draw a warrant on the State Treasurer for the amount of tax adjudged to have been wrongfully collected, together with legal interest thereon. The State Treasurer shall pay the warrant at once out of the general fund, in preference to other warrants or claims against the state. (3) A separate suit need not be filed for each individual payment made by any taxpayer, but a recovery may be had in one (1) suit for as many payments as have been made. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-31.

KRS 140.150 Repealed, 1966

140.150. Repealed, 1966 Catchline at repeal: Levy of tax on domestic corporation shares owned by decedent of foreign domicile. History: Repealed 1966 Ky. Acts ch. 187, Part V, sec. 2. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-32.

KRS 140.151 Repealed, 2000

140.151. Repealed, 2000 Catchline at repeal: Payment of taxes on farms or other closely held businesses. History: Repealed 2000 Ky. Acts ch. 151, sec. 7, effective July 14, 2000. -- Amended 1994 Ky. Acts ch. 65, sec. 18, effective July 15, 1994. -- Created 1978 Ky. Acts ch. 138, sec. 3, effective June 17, 1978.

KRS 140.152 Repealed, 2000

140.152. Repealed, 2000 Catchline at repeal: Applicability of KRS 140.070, 140.080 and 140.151. History: Repealed 2000 Ky. Acts ch. 151, sec. 7, effective July 14, 2000. -- Created 1978 Ky. Acts ch. 138, sec. 4, effective June 17, 1978.

KRS 140.160 Supervision of collection of taxes by Department of Revenue -- Limitation on actions to collect taxes

140.160. Supervision of collection of taxes by Department of Revenue -- Limitation on actions to collect taxes (1) The Department of Revenue shall have full supervision of the collection of all taxes due under the provisions of this chapter, including th e power to institute suit in this and other states. It may employ attorneys and other persons necessary to carry out the full intent and purpose of this chapter. The department shall furnish, upon application, blank forms covering information as may be nec essary to determine the amount of tax due the state on the transfer of all property subject to tax. (2) The department may cause personal representatives or beneficiaries to file all statements required by this chapter with the clerks of the proper courts and with the department, and may require them to furnish any additional information deemed necessary to support the computation of the amount of tax that should be paid by the estate. The personal representative, or the beneficiaries in the absence of a personal representative, shall compute the taxes imposed by this chapter on the tax return provided by the department when: (a) 1. A United States estate tax return is required to be filed under federal law and applicable regulations; and 2. The estate includes property over which Kentucky has jurisdiction for purposes of the taxes imposed by this chapter; or (b) Any assets from the estate subject to the taxes imposed by this chapter pass to a beneficiary taxable under KRS 140.070. (3) (a) For deaths prior to July 1, 2026, the tax return, when required, shall be filed with the department within eighteen (18) months after the death of the decedent or at the time payment of the tax is made pursuant to KRS 140.210. (b) For deaths on or after July 1, 2026, the tax return, when required, shall be filed with the department within twenty-four (24) months after the death of the decedent or at the time payment of the tax is made pursuant to KRS 140.210. (4) Except as herein provided, no action to enforce the collection of the tax imposed by this chapter shall be commenced more than ten (10) years after the cause of action first accrued. In case the settlement of an estate is delayed because of litigation or other unavoidable cause, the delay shall suspend the limitation, prescribed by this subsection, until the cause of delay is removed. In the case of a fraudulent return or any other fraudulent representation affecting the amount of or the liability for the tax imposed by this chapter notwithstanding any provision of limitation provided elsewhere, the tax due by reason thereof may at any time be assessed and collected by the methods set out in this chapter, including action in a court of competent jurisdiction. Effective: April 14, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 33, effective April 14, 2026. -- Amended 2005 Ky. Acts ch. 85, sec. 457, effective June 20, 2005. -- Amended 2000 Ky. Acts ch. 151, sec. 1, effective July 14, 2000. -- Amended 1992 Ky. Acts ch. 403, sec. 15, effective July 14, 1992. -- Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 156, effective January 2, 1978. -- Amended 1962, sec. 93, sec. 1. -- Amended 1948 Ky. Acts ch. 96, sec. 6. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281a-33, 4281a-40, 4281a-51.

KRS 140.165 Audits, appraisals and examinations -- Finality of return and payment

140.165. Audits, appraisals and examinations -- Finality of return and payment The department may make such audits, appraisals, and examinations of records according to KRS 131.130 to properly supervise the collection of all taxes due under the provisions of this chapter. A completed tax return with full payment attached shall be final one (1) year after receipt by the department unless an audit has been initiated with due notice to the personal representative, except: (1) If any assets of the estate were not reported on the tax return filed with the department, or (2) If any information was not revealed to the department which would affect the amount of tax due. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 458, effective June 20, 2005. -- Created 1962 Ky. Acts ch. 93, sec. 4.

KRS 140.170 Appraisal of estates -- Appointment, duties and compensation of appraisers -- Records

140.170. Appraisal of estates -- Appointment, duties and compensation of appraisers -- Records (1) The District Court, upon the request of the personal representative or any interested party, shall appoint some competent person as appraiser of the estate. The appraiser shall give notice to all persons having an interest in the estate and to such other persons as the court may by order direct, and shall then appraise the property belonging to the estate. His report shall be filed with the court and a copy thereof with the Department of Revenue. He shall be paid for his services out of the funds of the estate, on the certification of the court, the amount to be fixed by that court. The total compensation of the appraiser shall not exceed one-tenth of one percent (0.1%) of the total appraised value of the estate for inheritance tax purposes, but there shall be a minimum allowance of five dollars ($5), together with the appraiser's actual and necessary traveling expenses. (2) After investigation, the department may change the value of the estate for inheritance taxes and advise the representatives of the estate of this changed valuation after the receipt of a completed tax return and full payment as shown by the tax return. (3) No appraiser shall accept any fee or reward from a personal representative, trustee, legatee, next of kin or heir of the decedent, or from any other person liable to pay the tax or any portion thereof. (4) No person shall willfully and knowingly subscribe to or make any false statement of fact, or knowingly subscribe to or exhibit any false paper or false report with intent to deceive any appraiser. (5) The department shall keep a record of all returns, reports, and schedules attached thereto required by this chapter for twelve (12) years. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 459, effective June 20, 2005. -- Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 157, effective January 2, 1978. -- Amended 1962 Ky. Acts ch. 93, sec. 2. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281a-12 (1922 ed.), 4281a-33, 4281a-38, 4281a-52.

KRS 140.180 Reports by personal representatives and trustees

140.180. Reports by personal representatives and trustees If real property of a decedent is passed to another person so as to become subject to the tax, his personal representative or trustee shall inform the department thereof within six (6) months after his appointment, or if the fact is not known to him within that time, then within one (1) month after the fact becomes known to him. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 460, effective June 20, 2005. -- Amended 1948 Ky. Acts ch. 96, sec. 13, effective June 17, 1948.-- Amended 1942 Ky. Acts ch. 204, sec. 8. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281a-17(1922 ed.), 4281a-34, 4281a-35.

KRS 140.190 Computation of and liability for taxes

140.190. Computation of and liability for taxes (1) All taxes imposed by this chapter shall be computed and paid on the fair cash value of the property transferred at the rates provided. All personal representatives, trustees, and beneficiaries shall be personally liable for the taxes until they are paid, but only to the extent that property from the estate come into their hands, and in no case shall the personal representative or trustee be liable for a greater sum than passes through his administration. (2) The heir, devisee, or other donee shall be personally liable for the tax on real property, as well as the personal representative or trustee, and if the personal representative or trustee pays the tax he may, unless the tax is made an expense of administration by the will or other instrument, recover the tax from the heir, devisee, or other donee of the real property. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 151, sec. 2, effective July 14, 2000. -- Amended 1962 Ky. Acts ch. 93, sec. 3. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281a-21, 4281a-36, 4281a-37, 4281a-47.

KRS 140.200 Repealed, 1946

140.200. Repealed, 1946 Catchline at repeal: Action to remove tax lien. History: Repealed 1946 Ky. Acts ch. 233, sec. 4. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-39.

KRS 140.210 Payment of taxes -- Discount -- Interest -- Bond for payment

140.210. Payment of taxes -- Discount -- Interest -- Bond for payment (1) (a) For deaths prior to July 1, 2026, all taxes imposed by this chapter, unless otherwise provided in this chapter, shall be due at the death of the decedent and shall be payable to the Department of Revenue within eighteen (18) months thereafter. If they are paid within nine (9) months, a discount of five percent (5%) shall be allowed, and if they are paid within eighteen (18) months, no interest shall be charged and collected ther eon. If the taxes due are not paid within eighteen (18) months, interest at the tax interest rate as defined in KRS 131.010 shall be paid from the expiration of the eighteen (18) months until payment is actually made to the department. (b) For deaths on or after July 1, 2026, all taxes imposed by this chapter, unless otherwise provided in this chapter, shall be due at the death of the decedent and shall be payable to the Department of Revenue within twenty -four (24) months thereafter. If they are paid within fourteen (14) months, a discount of five percent (5%) shall be allowed, and if they are paid within twenty -four (24) months, no interest shall be charged and collected thereon. If the taxes due are not paid within twenty-four (24) months, interest at the tax interest rate as defined in KRS 131.010 shall be paid from the expiration of the twenty-four (24) months until payment is actually made to the department. (2) In all cases where the personal representatives or trustees do not pay the taxes by the applicable eighteen (18) month or twenty -four (24) month deadline established in subsection (1) of this section, they shall be required to give bond, in the form and to the effect prescribed by the department, for the payment of the taxes and interest. Effective: April 14, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 34, effective April 14, 2026. -- Amended 2005 Ky. Acts ch. 85, sec. 461, effective June 20, 2005. -- Amended 1992 Ky. Acts ch. 338, sec. 6, effective August 1, 1992; and ch. 403, sec. 16, effective August 1, 1992. -- Amended 1976 Ky. Acts ch. 155, sec. 26. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281a -36, 4281a-41, 4281a-42. Legislative Research Commission Note (7/14/92). This section was amended by two 1992 Acts. Where those Acts are not in conflict, they have been compiled together. Where a conflict exists, the Act which was last enacted by the General Assembly prevails, pursuant to KRS 446.250.

KRS 140.220 Collection of taxes by personal representative or trustee -- Sale of property for tax -- Recovery of taxes from trust or life estate property

140.220. Collection of taxes by personal representative or trustee -- Sale of property for tax -- Recovery of taxes from trust or life estate property (1) A personal representative or trustee holding property subject to any of the taxes levied by this chapter shall not deliver the property until he has collected the tax thereon. (2) When a specific bequest of personal property other than money is subject to the tax and the legatee neglects or refuses to pay the tax upon demand, the personal representative or trustee may, upon such notice as the court having jurisdiction of the settlement of the estate may direct, be authorized to sell the property or, if it can be divided, such portion thereof as may be necessary. He shall deduct the tax from the proceeds of the sale, and account to the legatee for the balance, if any, of the proceeds, in lieu of the property. (3) The personal representative or trustee shall collect the taxes due upon land or the proceeds of insurance policies that are subject to tax from the heirs or devisees entitled thereto, and he may be authorized to sell the land if they refuse or neglect to pay the tax. (4) If any trust or life estate is subject to the taxes levied by this chapter by virtue of its inclusion in the decedent's estate under KRS 140.100(4), unless the decedent directs otherwise in his will, the personal representative of the decedent's estate shall be entitled to recover from the trust or life estate property that portion of the total taxes assessed against the decedent's estate under this chapter equal to the gross value of such trust or life estate property at the decedent's death divided by the value of the decedent's entire gross estate, such values to be as finally determined for purposes of this chapter. Effective: July 15, 1986 History: Amended 1986 Ky. Acts ch. 458, sec. 3, effective July 15, 1986. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a- 47.

KRS 140.222 Deferred payment of inheritance tax -- Interest -- Time and method of election to defer -- Liability for deferred payments

140.222. Deferred payment of inheritance tax -- Interest -- Time and method of election to defer -- Liability for deferred payments (1) When the net tax due from a beneficiary's distributive share exceeds five thousand dollars ($5,000), the beneficiary may elect to pay the inheritance tax in ten (10) equal installments. The first installment shall be due at the time the return is filed with succeeding payments due in annual installments beginning one (1) year after the return is filed. (2) (a) For deaths prior to July 1, 2026, the portion of the tax deferred under this section shall be charged with interest at the tax interest rate as defined in KRS 131.010 commencing eighteen (18) months after the date of death. (b) For deaths on or after July 1, 2026, the portion of the tax deferred under this section shall be charged with interest at the tax interest rate as defined in KRS 131.010 commencing twenty-four (24) months after the date of death. (3) When the beneficiary elects to pay the tax on the beneficiary's share as provided in this section, such election must be made in writing and signed by the beneficiary and must be filed with the Department of Revenue at the time of filing the tax return for the decedent's estate under KRS 140.160(3). The filing of the election together with payment of the first installment shall relieve the personal representative or trustee of the estate from further liability for the tax payments deferred under this section and the bond requirements of KRS 140.210, subject to the final approval by the Department of Revenue of all other taxes due under this chapter. (4) A beneficiary electing to defer the payment of taxes under this section shall be personally liable for the amount of deferred taxes until paid. (5) The period of limitations for actions to enforce the collection of taxes imposed by this chapter as provided by KRS 140.160(4) shall be suspended for the period of time for deferred payment granted by this section. Effective: April 14, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 35, effective April 14, 2026. -- Amended 2005 Ky. Acts ch. 85, sec. 462, effective June 20, 2005. -- Amended 1982 Ky. Acts ch. 452, sec. 23, effective July 1, 1982. -- Created 1978 Ky. Acts ch. 233, sec. 7, effective June 17, 1978.

KRS 140.224 Bond to secure installment payment of inheritance tax

140.224. Bond to secure installment payment of inheritance tax (1) Where a beneficiary elects to pay the inheritance tax on the installment basis as provided in this chapter, such beneficiary may be required to post sufficient security at any time the department reasonably believes collection of the tax may be in jeopardy. (2) Failure of a beneficiary to pay any installment due or to post the required security shall cause all installments to become immediately due and payable. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 463, effective June 20, 2005. -- Created 1978 Ky. Acts ch. 233, sec. 42, effective June 17, 1978.

KRS 140.230 Deduction of taxes from interest less than fee -- From legacy charged on real property

140.230. Deduction of taxes from interest less than fee -- From legacy charged on real property (1) When any interest in property less than an estate in fee is devised or bequeathed to one or more beneficiaries with remainder to others, and the interest of one or more beneficiaries is subject to any of the taxes levied by this chapter, the personal representative shall deduct the tax upon such taxable interests from the whole property thus devised or bequeathed. Whenever property other than money is so devised or bequeathed he may, unless the taxes upon all the taxable interests are paid by the beneficiaries when due, be authorized to sell the property or such portion thereof as may be necessary, as provided in KRS 140.220, and having deducted the unpaid taxes on the taxable interests from the proceeds of the sale, he shall account for the balance in lieu of the property sold, as in other cases. (2) If a legacy subject to the tax is charged upon or payable out of real property, the heir or devisee, before paying the legacy, shall deduct the tax therefrom and pay it to the personal representative or trustee. The payment of this tax shall be enforced in the same manner as the payment of a tax on a direct legacy could be enforced. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281a-48, 4281a-49.

KRS 140.240 Repealed, 2000

140.240. Repealed, 2000 Catchline at repeal: Advance payment of tax. History: Repealed 2000 Ky. Acts ch. 151, sec. 7, effective July 14, 2000. -- Amended 1948 Ky. Acts ch. 96, sec. 7. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-43.

KRS 140.250 Repealed, 2000

140.250. Repealed, 2000 Catchline at repeal: Regulation of property in safe deposit boxes or held in trust or bailment. History: Repealed 2000 Ky. Acts ch. 151, sec. 7, effective July 14, 2000. -- Amended 1986 Ky. Acts ch. 496, sec. 21, effective August 1, 1986. -- Amended 1970 Ky. Acts ch. 280, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281a-45, 4281a-46.

KRS 140.260 Repealed, 2000

140.260. Repealed, 2000 Catchline at repeal: Payment of proceeds of insurance policy or annuity contract. History: Repealed 2000 Ky. Acts ch. 151, sec. 7, effective July 14, 2000. -- Amended 1954 Ky. Acts ch. 131, sec. 2, effective July 1, 1954. -- Amended 1948 Ky. Acts ch. 96, sec. 11. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-45.

KRS 140.265 Repealed, 2000

140.265. Repealed, 2000 Catchline at repeal: Payment of proceeds of profit sharing, stock bonus, thrift or pension plan. History: Repealed 2000 Ky. Acts ch. 151, sec. 7, effective July 14, 2000. -- Amended 1990 Ky. Acts ch. 142, sec. 3, effective July 13, 1990. -- Created 1976 Ky. Acts ch. 106, sec. 1.

KRS 140.270 Appraisal and taxation of estate of nonresident -- Notification of state of domicile -- Reciprocity

140.270. Appraisal and taxation of estate of nonresident -- Notification of state of domicile -- Reciprocity (1) In the absence of administration in this state upon the estate of a nonresident, the Department of Revenue, at the request of a personal representative duly appointed and qualified in the state of the decedent's domicile, or of a grantee under a conveyance made during the grantor's lifetime, and upon satisfactory evidence furnished by the personal representative or grantee, or otherwise, may determine whether or not any property of the decedent within this state is subject to the provisions of this chapter. If so, the department may determine the amount of tax and adjust the same with the personal representative or grantee, and for that purpose may appoint an appraiser to appraise the property. The expense of appraisal shall be charged upon the property in addition to the tax. The department's certificate of the amount of tax and its receipt for the amount therein certified may be filed with the county judge/executive of the county where the property is located, and when so filed shall be evidence of the payment of the tax to the extent of such certification. When the tax is not adjusted within six (6) months after the death of the decedent, the proper District Court, upon application of the department, shall appoint an administrator in this state. (2) When evidence of ownership of intangible personal property belonging to a nonresident decedent is found to be physically located in this state, the Department of Revenue shall so inform the state official collecting death tax in the state of domicile of the decedent, if that state furnishes like information to the Department of Revenue of this state in a reciprocal manner. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 464, effective June 20, 2005. -- Amended 1978 Ky. Acts ch. 384, sec. 284, effective June 17, 1978. -- Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 158, effective January 2, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. seca. 4281a-44, 4281a-45.

KRS 140.275 Exclusion of intangible personal property held in trust, under reciprocal agreements with other states

140.275. Exclusion of intangible personal property held in trust, under reciprocal agreements with other states (1) It is hereby declared to be the legislative policy that Kentucky shall not be a party to interstate double taxation under the terms of the Kentucky inheritance and estate tax laws. Pursuant to this policy, the commissioner of the Department of Revenue is hereby authorized to omit from the property subject to tax under those laws, any intangible personal property of a nonresident decedent (having a domicile in the United States) held in trust by a Kentucky trustee if the jurisdiction (state, territory or District of Columbia) in which the decedent was domiciled grants similar immunity to residents of Kentucky, but only in the event the personal representative shall present evidence that the tax has been or will be paid to the other jurisdiction. If another state, territory, or the District of Columbia of the United States constitutionally imposes a tax on the transfer of estates or of the distributive shares thereof, but grants immunity from the tax in respect of any intangible property of its resident decedents held in trust by a Kentucky trustee, then the commissioner of the Department of Revenue is hereby authorized to exclude from the property subject to tax under the Kentucky inheritance and estate tax laws, the intangible personal property of a Kentucky resident held in trust in that jurisdiction but only in the event the personal representative shall present evidence that the tax has been or will be paid to the other jurisdiction. (2) It is expressly provided, however, in view of the uncertainty now prevailing with respect to the correct interpretation of the Constitution of the United States regarding the jurisdiction of the several states, that the provisions of this section shall be inoperative under the second alternative until and unless an agreement, approved as to legality by the Attorney General, between the commissioner of the Department of Revenue as agent for Kentucky and the appropriate administrative official of such other state, shall have been executed and an original copy thereof filed with the Kentucky Department of Revenue. (3) This section is intended to apply retroactively to all estates of decedents on or after April 25, 1936, which are subject to Kentucky inheritance tax laws. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 465, effective June 20, 2005. -- Created 1942 Ky. Acts ch. 204, sec. 9.

KRS 140.280 Suits here by other states to collect taxes due -- Reciprocity

140.280. Suits here by other states to collect taxes due -- Reciprocity The official or agency charged with the administration of the death tax laws of the domiciliary state shall be deemed a creditor of the decedent, and may sue in the courts of this state and enforce such claims for taxes, penalties and interest due to that state or political subdivision, if the laws of that state contain a provision whereby this state is given reasonable assurance of the collection of its death taxes, interest and penalties from the estates of decedents dying domiciled in this state. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-50.

KRS 140.285 Agreement with taxing authorities of other states

140.285. Agreement with taxing authorities of other states (1) When the Department of Revenue claims that a decedent was domiciled in Kentucky at the time of death and the taxing authorities of another state or states make a similar claim with respect to their state or states, the commissioner of the Department of Revenue may enter into a written agreement with such taxing authorities and the executor, administrator or trustee, fixing the sum acceptable to the department in full settlement of the inheritance or estate taxes imposable under this chapter. Such agreement shall also fix the sum acceptable to such other state or states in full settlement of the death taxes imposable by such state or states. (2) If the aggregate amount payable under such agreement to the states involved is less than the maximum sum allowable as a credit to the estate against the federal estate tax imposed thereon, then the executor, administrator or trustee shall also pay to the State of Kentucky as an estate tax so much of the difference between such aggregate amount and the amount of such credit as the amount payable to Kentucky under the agreement bears to such aggregate amount. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 466, effective June 20, 2005. -- Created 1960 Ky. Acts ch. 186, Art. VI, sec. 1, effective June 16, 1960.

KRS 140.290 Refund of tax when debts are proved after deduction of tax

140.290. Refund of tax when debts are proved after deduction of tax Whenever debts are proved against the estate of a decedent after the payment of legacies or distribution of property from which the tax has been deducted or upon which it has been paid, and a refund is made by the legatee, devisee, heir or next of kin, a proportion of the tax so deducted or paid shall be repaid to him, by the personal representative or trustee if the tax has not been paid to the Department of Revenue, or by the department if it has been so paid. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 467, effective June 20, 2005. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281a-9 (1922 ed.).

KRS 140.300 Definitions for KRS 140.310 to 140.360

140.300. Definitions for KRS 140.310 to 140.360 As used in KRS 140.310 to 140.360, these words shall have the following meaning: (1) "Agricultural land" means that real estate which is defined in KRS 132.010(9). (2) "Horticultural land" means that real estate which is defined in KRS 132.010(10). (3) "Agricultural or horticultural value" means the value as defined in KRS 132.010(11). (4) "Qualified real estate" means real property which: (a) Is either horticultural or agricultural land; (b) Has been used for agricultural or horticultural purposes for five (5) years prior to the death of the owner of the real estate or a joint owner thereof; and (c) Fair cash value exceeds fifty percent (50%) of the gross taxable estate of decedent for Kentucky inheritance tax purposes. (5) "Qualified person" means the spouse of a deceased owner of agricultural or horticultural land; the children, adopted children, and stepchildren of that deceased owner; the spouses and issue of that deceased owner's children, adopted children, and stepchildren, and is a person who proposes to devote the real property to agricultural or horticultural purposes for at least five (5) years after the death of the decedent in whose estate the agricultural or horticultural land is subject to assessment. Effective: July 13, 1990 History: Amended 1990 Ky. Acts ch. 142, sec. 4, effective July 13, 1990. -- Created 1978 Ky. Acts ch. 138, sec. 5, effective July 1, 1978. --

KRS 140.310 Assessment of agricultural or horticultural land for inheritance tax purposes

140.310. Assessment of agricultural or horticultural land for inheritance tax purposes (1) Agricultural or horticultural land may be assessed at its agricultural or horticultural value in a decedent's estate for Kentucky inheritance tax purposes if the agricultural or horticultural land is qualified real estate and is passing to a qualified person or persons. (2) Agricultural or horticultural land which comprises a portion of the assets of a corporation or partnership, and which is wholly owned by the decedent or by the decedent and qualified persons, the balance of the assets of said corporation or partnership being personal property entirely related to the use of agricultural or horticultural land, may be assessed at its agricultural or horticultural value in a decedent's estate for Kentucky inheritance tax purposes for the agricultural or horticultural rate for qualified real estate, if the stock in said corporation or partnership interest passes to a qualified person or persons. Effective: July 15, 1986 History: Amended 1986 Ky. Acts ch. 8, sec. 1, effective July 15, 1986. -- Amended 1980 Ky. Acts ch. 402, sec. 1, effective July 15, 1980. -- Created 1978 Ky. Acts ch. 138, sec. 6, effective July 1, 1978.

KRS 140.320 Taxation of land converted from agricultural use

140.320. Taxation of land converted from agricultural use If, within five (5) years after the death of the decedent, a qualified person sells, conveys, or otherwise transfers the ownership, directly or indirectly, of the qualified real estate to any person or persons other than another qualified person who is a joint owner or the qualified real estate is converted to a use other than agricultural or horticultural use, then the qualified persons to whom the property passed at the death of the decedent in whose estate the agricultural or horticultural value was reported shall cause to be paid, pursuant to administrative regulations promulgated by the Department of Revenue, the additional inheritance tax that would have been due on the decedent's estate if fair market value had been used to compute the tax due on the estate rather than the agricultural or horticultural value, along with interest at the tax interest rate as defined in KRS 131.010(6). Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 468, effective June 20, 2005. -- Amended 1992 Ky. Acts ch. 338, secs. 7 and 10, effective August 1, 1992. -- Created 1978 Ky. Acts ch. 138, sec. 7, effective July 1, 1978.

KRS 140.330 Land presumed assessed at agricultural value -- Procedure when not so assessed

140.330. Land presumed assessed at agricultural value -- Procedure when not so assessed In the event the qualified real estate is reported for inheritance tax purposes at its agricultural or horticultural value and that real estate has been assessed at its agricultural or horticultural value for ad valorem tax purposes, then that assessment shall be presumed to be its agricultural or horticultural value for inheritance tax purposes. If, however, the real estate has not been so assessed for ad valorem tax purposes, then the agricultural or horticultural value shall be determined pursuant to KRS Chapter 132 and such regulations as may be promulgated by the Department of Revenue to determine horticultural or agricultural value for inheritance tax purposes. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 469, effective June 20, 2005. -- Amended 1980 Ky. Acts ch. 402, sec. 2, effective July 15, 1980. -- Created 1978 Ky. Acts ch. 138, sec. 8, effective July 1, 1978. Legislative Research Commission Note. Although this section is included in Acts 1980, ch. 402, the proposed change was deleted by floor amendment.

KRS 140.340 Reporting of qualified real estate at agricultural or horticultural value

140.340. Reporting of qualified real estate at agricultural or horticultural value The person responsible for filing the inheritance tax return for a decedent's estate and who elects to report qualified real estate at its agricultural or horticultural value shall in addition report the fair market value of the qualified real estate. Effective: July 1, 1978 History: Created 1978 Ky. Acts ch. 138, sec. 9, effective July 1, 1978.

KRS 140.350 Issuance of tax waivers -- Liens -- Procedure

140.350. Issuance of tax waivers -- Liens -- Procedure At such time as the Department of Revenue accepts the agricultural or horticultural value on qualified real estate comprising a portion of a decedent's estate and issues tax waivers thereon, it shall cause to be filed in the office of the county clerk of the county where the real estate or the greater portion thereof is located, on a form prescribed by the Department of Revenue, a lien which on its face shall expire in five (5) years and the lien shall secure the payment of any additional tax which may become due as the result of the qualified real estate being sold to others than qualified persons or the qualified real estate being converted to other than a qualified use. If additional taxes are due as the result of the real estate being transferred to other than a qualified person or its use is converted to other than agricultural or horticultural use, and the additional tax is not paid after assessment of the tax, within the time prescribed by the regulations of the Department of Revenue, then the Department of Revenue may proceed to enforce the lien in accordance with law. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 470, effective June 20, 2005. -- Created 1978 Ky. Acts ch. 138, sec. 10, effective July 1, 1978.

KRS 140.360 Limit on reduction of taxable value

140.360. Limit on reduction of taxable value No gross estate shall be reduced by more than $500,000 as a result of the provisions of KRS 140.300 to 140.360. Effective: July 1, 1978 History: Created 1978 Ky. Acts ch. 138, sec. 11, effective July 1, 1978.

KRS 140.990 Penalties

140.990. Penalties (1) Any person charged with a duty in this chapter who fails or refuses to perform that duty shall be fined not less than five dollars ($5) nor more than one hundred dollars ($100). (2) Any person who violates KRS 140.170(3) shall be fined not less than two hundred dollars ($200) nor more than five hundred dollars ($500), or imprisoned in the county jail for sixty (60) days, or both, and in addition the court shall dismiss him from service as an appraiser. (3) Any person who violates KRS 140.170(4) shall be fined not less than fifty dollars ($50) nor more than five hundred dollars ($500), or imprisoned in the county jail for not more than twelve (12) months, or both. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 151, sec. 6, effective July 14, 2000. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281a- 12 (1922 ed.), 4281a-46, 4281a-52.

KRS 140.991 Civil penalties for violation of chapter

140.991. Civil penalties for violation of chapter Any personal representative or other person who violates any of the provisions of this chapter shall be subject to the uniform civil penalties imposed pursuant to KRS 131.180. Effective: July 15, 1994 History: Amended 1994 Ky. Acts ch. 65, sec. 19, effective July 15, 1994. – Created 1992 Ky. Acts ch. 403, sec. 17, effective July 14, 1992.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=37672Fetched: 10/20/2026