KRS 140.222: Deferred payment of inheritance tax -- Interest -- Time and method of

election to defer -- Liability for deferred payments.

(1) When the net tax due from a beneficiary's distributive share exceeds five thousand

dollars ($5,000), the beneficiary m ay elect to pay the inheritance tax in ten (10)

equal installments. The first installment shall be due at the time the return is filed

with succeeding payments due in annual installments beginning one (1) year after

the return is filed.

(2) (a) For deaths prior to July 1, 2026, the portion of the tax deferred under this

section shall be charged with interest at the tax interest rate as defined in KRS

131.010 commencing eighteen (18) months after the date of death.

(b) For deaths on or after July 1, 2026, th e portion of the tax deferred under this

section shall be charged with interest at the tax interest rate as defined in KRS

131.010 commencing twenty-four (24) months after the date of death.

(3) When the beneficiary elects to pay the tax on the beneficiary 's share as provided in

this section, such election must be made in writing and signed by the beneficiary

and must be filed with the Department of Revenue at the time of filing the tax

return for the decedent's estate under KRS 140.160(3). The filing of th e election

together with payment of the first installment shall relieve the personal

representative or trustee of the estate from further liability for the tax payments

deferred under this section and the bond requirements of KRS 140.210, subject to

the final approval by the Department of Revenue of all other taxes due under this

chapter.

(4) A beneficiary electing to defer the payment of taxes under this section shall be

personally liable for the amount of deferred taxes until paid.

(5) The period of limit ations for actions to enforce the collection of taxes imposed by

this chapter as provided by KRS 140.160(4) shall be suspended for the period of

time for deferred payment granted by this section.