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inheritance tax

An inheritance tax is a tax imposed on a person who inherits property from a deceased person. There is no federal inheritance tax, but some states have an inheritance tax.

In Kentucky, there is an inheritance tax that applies to certain beneficiaries who inherit property from a deceased person. The tax rate and whether the beneficiary has to pay the tax depends on the relationship to the decedent. There are three classes of beneficiaries: Class A includes close relatives such as spouses, parents, children, grandchildren, and siblings, who are exempt from the inheritance tax. Class B includes more distant relatives like nieces, nephews, daughters-in-law, sons-in-law, aunts, uncles, and half relatives, who are subject to the tax at varying rates. Class C beneficiaries, who are all other individuals not included in Class A or B, face the highest tax rates. The amount of tax due is determined by the value of the property inherited and the beneficiary's class. It's important to note that life insurance proceeds are generally exempt from the Kentucky inheritance tax when paid to a named beneficiary, and not to the estate. There is no federal inheritance tax, but the federal government does impose an estate tax, which is different from an inheritance tax and is based on the value of the decedent's estate rather than on who inherits the property.

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Taxes

inheritance tax

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Kentucky State Code

Kentucky State Code

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Taxes

inheritance tax