KRS 140.020: Taxation of transfers made in contemplation of death -- Revocable trusts --

Presumption of contemplation -- When presumption does not apply.

(1) The terms of this chapter shall apply to any property or interest therein, of which the

decedent has made a transfer by trust or otherwise, in contemplation of or intended

to take effect in possession or enjoyment at or after death, including a transfer under

which the transferor has retained for his life or any period not ending before his

death (a) the possession or enjoyment of, or the income from the property; or (b) the

actual or contingent power to designate the persons who shall possess the property

or the income therefrom, except in the case of a bona fide sale for an adequate and

full consideration in money or money's worth. It shall further apply to any property

conveyed in trust over which the settlor has a power of revocation exercisable by

will.

(2) Every transfer made within three (3) years prior to the death of the grantor, vendor

or donor of a m aterial part of his estate, or in the nature of a final disposition or

distribution thereof, and without an adequate valuable consideration, shall be

construed prima facie to have been made in contemplation of death within the

meaning of this chapter. If a transfer was made more than three (3) years prior to the

death of the decedent it shall be a question of fact, to be determined by the proper

tribunal, whether the transfer was made in contemplation of death.

(3) There shall be no presumption of contemplation of death as to certificates of deposit

jointly owned and all such certificates of deposit shall be taxed pursuant to KRS

140.050.