140.110 Taxation of contingent and defeasible estates.

183 words·~1 min read·/ky/chapter-140/140-110

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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.