2014 Kentucky Revised Statutes CHAPTER 140 - INHERITANCE AND ESTATE TAXES 140.020 Taxation of transfers made in contemplation of death -- Revocable trusts -- Presumption of contemplation -- When presumption does not apply.
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140.020 Taxation of transfers made in contemplation of death -- Revocable
trusts -- Presumption of contemplation -- When presumption does not
apply.
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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.
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.
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.
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