Bill > HB726

This bill amends Kentucky Revised Statutes (KRS) 140.080 to change inheritance tax exemptions for Class B beneficiaries. Currently, Class B beneficiaries (which typically include siblings, nieces, nephews, and other more distant relatives) receive a $1,000 exemption from inheritance taxes. The bill will modify this exemption so that for decedents dying on or after January 1, 2026, Class B beneficiaries will be exempt from inheritance taxes on their entire inheritable interest. This means that Class B beneficiaries will no longer be required to pay inheritance taxes on any property or assets they inherit from the deceased after the specified date. The change is part of a broader set of inheritance tax provisions in Kentucky that define different classes of beneficiaries and their tax treatment, with the goal of potentially reducing the tax burden on certain family members and heirs.

Budget and Finance

https://apps.legislature.ky.gov/record/25RS/hb726.html