2014 Kentucky Revised Statutes CHAPTER 140 - INHERITANCE AND ESTATE TAXES 140.030 Taxation of contracts in contemplation of death -- Proceeds of life insurance policies -- Exemptions.
Download as PDF
140.030 Taxation of contracts in contemplation of death -- Proceeds of life
insurance policies -- Exemptions.
(1)
(2)
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.
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.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.