Kentucky Inheritance Tax

Kentucky inheritance tax is levied on the inheritor's right to inherit property after the death of the owner.

The taxable amount and the amount to be exempted from taxation are decided upon after evaluating the relationship that was between the inheritor and the dead person. Bigger exemptions and lower tax rates are charged if the relationship is a close one. Estate tax or pickup tax and inheritance tax are two different concepts. But, both of them can be included broadly into death taxes. This is because of the simple reason that both these taxes come into the context only after the death of the owner of the property.

Here are some of the Kentucky inheritance tax forms:

Form 92A200PKT - Inheritance and Estate Tax Forms and Instructions Packet

Form 92A201 - Inheritance Tax Return - No Tax Due

Form 92A200 - Inheritance and Estate Tax Return

Form 92A205 - Inheritance Tax Return - Simplified Format

The inheritance tax Kentucky is payable at the Kentucky Department of Revenue. The department also recommends the Kentucky inheritance tax payers to file their returns electronically. All types of property of a resident of Kentucky other than the real estates held by the residents in some other state are also taxable under inheritance tax laws of Kentucky. If any non resident of Kentucky owns real estates or other inherited property in Kentucky, then he is liable to be taxed.

A discount of 5% is allowed on payments of Kentucky inheritance tax within a period of nine months of the death of the owner of the property. An installment facility of ten equal annual installments is available if the value of the inheritance tax liability is in excess of $5000. The tax would be paid after filing the inheritance tax returns.

In Kentucky, the beneficiaries are divided into the following three classes:

• Class A beneficiaries - Parents, children, spouse, sister, brother and grandchildren
• Class B beneficiaries - Uncle, aunts, nephew, niece, son-in-law, daughter-in-law
• Class C beneficiaries - All other persons like cousins who are not admitted into Class A and B.

The rates of Kentucky inheritance tax are as follows:

• Class A beneficiaries - if the death has occurred after 30th June, 1998, they are exempt from taxation
• Class B beneficiaries - 4% to 16%
• Class C beneficiaries - 6% to 16%