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The Fleck Firm handles personal injury cases, estate planning, probate, and more. Many people don’t know the inheritance laws in Kentucky.
Inheritance Law in Kentucky
Most people do not want to think about their ultimate demise. However, in today’s tumultuous times with a global pandemic raging, death is on many minds. In Kentucky, you should be aware that the state is one of the few to implement what is referred to as dower and curtesy laws. Without a doubt, the laws are a little antiquated. Only five other states have similar laws. In this article, we will explore what you need to know about Kentucky Inheritance laws.
Kentucky Inheritance Tax
In Kentucky, not all heirs have to pay inheritance tax. Whether or not they have to pay the tax is dependent on the relationship that they had with the deceased. Heirs are classified by ‘class’ for determination
- Class A: Spouse, children, siblings, and grandparents are completely exempt from inheritance taxes
- Class B: Great-grandchildren, uncles, aunts, nieces, and nephews are exempt up to $1,000. The rates will range from four to 16 percent.
- Class C: Anyone who falls outside Class A and Class B. Organizations, cousins, and friends are exempt up to $500. Rates will range from six to 16 percent.
The inheritance tax is filed against the estates of both state residents and nonresidents who might own property in the state of Kentucky. The tax must be filed within 18 months of an individual’s death. You will obtain a perk if you file early. If you can pay off the entire inheritance tax within nine months after the death, then you will get a 5 percent discount from the Kentucky Department of Revenue. Some people are also eligible for an installment plan if they opt to pay things off gradually. Please be aware, those who file late will incur a penalty tax.
If you need a lawyer to help with probate, or another legal matter, please contact The Fleck Firm today.