{"data":{"id":"us-ky/krs-140.030","jurisdiction":"us-ky","citation":"KRS 140.030","heading":"Taxation of contracts in contemplation of death -- Proceeds of life","body":"insurance policies -- Exemptions.\n(1) If it appears, either from the will of the decedent or from extrinsic evidence, that an\nobligation of a contractual nature exists in favor of any  person payable at or after\ndeath of the decedent, the sum so payable shall be treated for the purposes of this\nchapter as a taxable transfer, unless it affirmatively appears by competent evidence\nthat a consideration substantially equivalent in value to t he amount due under the\ncontract was paid or furnished by or for the other party thereto during the life of the\ndecedent.\n(2) The proceeds payable under any life insurance policy on the death of the assured\n(other than a United States government life insur ance policy or national service life\ninsurance policy issued by or through the federal government), payable to the\nassured or his estate, shall be taxable as a part of the legacy as a distributable share\nof the beneficiary. The proceeds of an insurance pol icy payable to a designated\nbeneficiary, including a testamentary or inter vivos trustee, other than the assured or\nhis estate, shall be tax -free. The proceeds payable under any United States\ngovernment life insurance policy or national service life insura nce policy issued by\nor through the federal government, whether payable to a designated beneficiary or\nto the assured or his estate, and any pension or annuity payments made or to be\nmade to the surviving spouse of an employee of a railroad or other carrie r under the\nFederal Railroad Retirement Act of 1935 as amended, shall be tax -free, and shall\nnot be considered in determining the value of any taxable transfer.","path":["KRS Chapter 140"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=28975","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:33Z","sha256":"5361dd6cc758197687d5be21b2ebe3d21c305ecf49a15984c5386644a036b3a1","source_id":"us-ky","stale":false,"prev":"us-ky/krs-140.020","next":"us-ky/krs-140.040"},"notice":"GroundRules: Original legal text. Not legal advice."}