AN ACT relating to inheritance tax deductions.

UNOFFICIAL COPY 26 RS BR 1907
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AN ACT relating to inheritance tax deductions. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 140.090 is amended to read as follows: 3
(1) In calculating the value of the distributive shares the following deductions and no 4
others shall be allowed: 5
(a) Debts of the decedent, except debts secured by property not subject to the tax 6
jurisdiction of Kentucky ,[;] and except debts barred by the statute of 7
limitations; 8
(b) Taxes accrued and unpaid, except those on property not subject to the tax 9
jurisdiction of Kentucky; 10
(c) Death duties paid to foreign countries; 11
(d) Federal estate taxes, in the proportion which the net estate in Kentucky 12
subject to federal estate taxes bears to the total net estate everywhere subject 13
to federal estate taxes; all calculations are subject to a pproval by the 14
Department of Revenue; 15
(e) Drainage, street, or other special assessments due and unpaid which are a lien 16
on said property; 17
(f) Funeral, monument, and cemetery lot maintenance expenses actually paid not 18
exceeding in total: 19
1. Five thousand dollars ($5,000) for decedents with a date of death prior 20
to August 1, 2026; or 21
2. Ten thousand dollars ($10,000) for decedents with a date of death on 22
or after August 1, 2026; 23
(g) Commission of executors and administrators in the amount actually allowed 24
and paid; and 25
(h) Cost of administration, including attorney's fees actually allowed and paid. 26
(2) Notwithstanding[ the provisions of] KRS 404.040, the debts of a deceased wife, 27
UNOFFICIAL COPY 26 RS BR 1907
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subject to the exception in subsection (1)(a), shall be allowed in calculating t he 1
distributive shares of her estate for purposes of this chapter, provided such debts are 2
paid from the proceeds of her estate. 3