Kentucky Inheritance Tax
U.S. State Estate & Inheritance Tax

Kentucky Inheritance Tax Guide Kentucky Inheritance Tax Guide

Kentucky Inheritance Tax Guide

Kentucky Inheritance Tax Guide (2025) — Classes A/B/C, 9-Month Discount, Forms, Nonresidents & Calculator

Last updated: 10 Nov 2025 • Author: Alexander Foelsche CPA (US), WP (DE), RE (CH)

Kentucky Inheritance Tax & Probate — Complete Guide

What executors and families need to know about the Kentucky inheritance tax and probate: who pays (Class A/B/C), what’s taxable, nonresident rules for property in Kentucky, forms, deadlines, the 5% 9-month discount, and planning ideas — plus a calculator, case notes, and a nonresident guide.

Get help: Kentucky Inheritance Tax Service (fixed-fee)
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Quick Primer (official): Kentucky Department of Revenue — Inheritance & Estate Tax portal (forms, FAQs, addresses, payment). See forms 92A200, 92A201, and Guide 92F101.
Why this matters. Kentucky’s inheritance tax is assessed per beneficiary using Classes A/B/C. Timing can save money: a 5% discount applies if each beneficiary’s tax is paid within 9 months.

Kentucky Inheritance & Probate Basics

Courts & intestacy

Probate is handled by Kentucky District Courts (probate division). Without a will, distribution follows Kentucky intestacy statutes.

How Kentucky probate works

Typical steps: open estate, appoint personal representative, notices to interested parties/creditors, inventory & appraisals, pay debts/expenses/taxes, accountings, decree of distribution, close estate.

Kentucky Inheritance Tax — At a Glance

Tax type
State inheritance tax (not an estate tax). Liability is calculated per beneficiary.
Beneficiary classes
Class A: spouse, lineal ascendants/descendants — generally exempt.
Class B: siblings, nieces/nephews, certain in-laws — modest exemptions, graduated rates.
Class C: all others — small exemption, graduated rates.
Nonresidents
Generally taxed on Kentucky-situs real and tangible property (e.g., real estate, vehicles, equipment, art kept in KY). Most nonresident intangibles are excluded unless they have a business situs in Kentucky.
Due date & discount
Return due in 18 months after death. 5% discount if a beneficiary’s tax is paid within 9 months of death.
Installments
If a beneficiary’s net tax > $5,000, up to 10 annual installments may be available (interest applies).
Core forms
92A200 (Inheritance Tax Return); 92A201 (No Tax Due); and the court Affidavit of Exemption when all takers are Class A.

Need a fast estimate? Try the Kentucky Inheritance Tax Calculator.

Official Pages, Forms & Where to File

Nonresidents & Kentucky-Situs Property (“Inheritance Tax on Property in Kentucky”)

Asset typeKentucky treatmentNotes
Real property in KentuckyIncludedTaxable for Class B/C beneficiaries; exempt for Class A.
Tangible personal property kept in KYIncludedVehicles, equipment, boats, artwork located in KY.
Intangibles (stock, bank/brokerage)Generally excludedExcluded for nonresidents unless a business situs is established in KY.
Entity interests (LLC/partnership)Generally excludedTreated as intangibles; confirm no KY business situs.

If you’re a nonresident with Kentucky real/tangible property, see the Nonresident Guide for examples and checklists.

Filing Mechanics, Discount & Installments

  • When to file: Return due within 18 months from date of death.
  • 5% discount: Pay within 9 months to claim the discount (per beneficiary).
  • Installments: If a beneficiary’s net tax > $5,000, up to 10 annual installments may be available (interest applies).
  • All Class A takers? Use 92A201 (No Tax Due) or the court Affidavit of Exemption where accepted.

Planning Ideas to Reduce Kentucky Inheritance Tax

  • Design for Class A. Favor Class A beneficiaries (outright or in trust) to keep transfers exempt.
  • Charitable bequests. Reduce taxable shares for Class B/C beneficiaries.
  • Nonresident situs. Limit Kentucky-situs assets for Class B/C; avoid creating a business situs for intangibles.
  • Liquidity & timing. Arrange cash to capture the 9-month discount and avoid forced sales.

For step-by-step implementation, see Kentucky Inheritance Tax Planning or book a fixed-fee planning consult.

Case Law & Examples

Key Kentucky authorities interpret beneficiary classes, exemptions, business situs, discount timing, and probate coordination. Browse concise notes on the Kentucky Inheritance Tax Cases page.

Need help filing or planning?

We assist with Kentucky probate coordination, per-beneficiary computations, Forms 92A200/92A201, nonresident situs analyses, and 9-month discount strategies.

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Related pages: Planning · Cases · Calculator · Service Packages

FAQs

Does Kentucky have an inheritance or an estate tax?

Kentucky has a state inheritance tax assessed per beneficiary, not a separate estate tax on the estate as a whole.

Who is exempt?

Class A (spouse and lineal ascendants/descendants) is generally exempt. Classes B/C have smaller exemptions and graduated rates.

What’s the deadline and discount?

Return due in 18 months; pay within 9 months to receive a 5% discount on the inheritance tax (per beneficiary).

How are nonresidents taxed?

Nonresidents are generally taxed on Kentucky-situs real and tangible property; nonresident intangibles are usually excluded unless they have a business situs in Kentucky.

Which forms do I use?

92A200 for tax-due cases; 92A201 for “No Tax Due”; many courts accept an Affidavit of Exemption when all takers are Class A.