# KRS § 140.080: 140.080 Exemptions of inheritable interests > Kentucky · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.080 ## Section - **Citation:** KRS § 140.080 - **Heading:** 140.080 Exemptions of inheritable interests - **Jurisdiction:** Kentucky - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** KY Code / Title XI / Chapter 140 / Section 140.080 ## Text 140.080 Exemptions of inheritable interests. (1) The following exemptions chargeable against the lowest bracket or brackets of inheritable interests shall be free from any tax under the preceding provisions of this chapter: (a) Surviving spouse, total inheritable interest. Effective as to decedents dying after August 1, 1985, notwithstanding anything in this chapter to the contrary, if the decedent's personal representative (or trustee or transferee, absent a personal representative) shall so elect, the spouse's inheritable interest shall include the entire value of any trust or life estate which is in a form that qualifies for the federal estate tax marital deductions under section 2056(b)(5) or 2056(b)(7) of the Internal Revenue Code of 1954, as amended through December 31, 1984, regardless of whether or not the federal estate tax marital deduction is elected by the decedent's personal representative. To be valid, the election referred to in the sentence immediately preceding must be made in the form prescribed by the Department of Revenue and must be filed on or before the due date of the tax return (plus extensions) or with the first tax return filed, whichever last occurs; (b) Class A beneficiaries as defined in KRS 140.070, other than the surviving spouse, of estates of decedents dying prior to July 1, 1995, as follows: 1. Infant child by blood or adoption, $20,000; 2. Child by blood who has been declared mentally disabled by a court of competent jurisdiction, $20,000; 3. Child adopted during infancy who has been declared mentally disabled by a court of competent jurisdiction, $20,000; or a 4. Child adopted during adulthood who was reared by the decedent during infancy and who has been declared mentally disabled by a court of competent jurisdiction, $20,000; 5. Parent, $5,000; 6. Child by blood, $5,000; 7. Stepchild, $5,000; 8. Child adopted during infancy, $5,000; 9. Child adopted during adulthood who was reared by the decedent during infancy, $5,000; or a 10. Grandchild who is the issue of a child by blood, the issue of a stepchild, the issue of a child adopted during infancy or the issue of a child adopted during adulthood who was reared by the decedent during infancy, $5,000; (c) Class A beneficiaries as defined in KRS 140.070, other than the surviving spouse, of estates of decedents dying on or after July 1, 1995, shall be as follows: 1. For decedents dying between July 1, 1995, and June 30, 1996, the greater of the exemption established pursuant to paragraph (1)(b) of this section or one-fourth (1/4) of each beneficiary's inheritable interest; 2. For decedents dying between July 1, 1996, and June 30, 1997, the greater of the exemption established pursuant to paragraph (1)(b) of this section or one-half (1/2) of each beneficiary's inheritable interest; 3. For decedents dying between July 1, 1997, and June 30, 1998, the greater of the exemption established pursuant to paragraph (1)(b) of this section or three-fourths (3/4) of each beneficiary's inheritable interest; and 4. For each decedent dying after June 30, 1998, each beneficiary's total inheritable interest; (d) All persons of Class B, under KRS 140.070, $1,000; and (e) All persons of Class C, under KRS 140.070, $500. (2) If the decedent was not a resident of this state, the exemption shall be the same proportion of the allowable exemption in the case of residents that the property taxable by this state bears to the whole property transferred by the decedent. ## Nearby sections - [KRS § 140.010 140.010 Levy of inheritance tax -- Property affected -- When tax attaches](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.010.md) - [KRS § 140.015 140.015 Exemption of benefits from federal government arising out of military service](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.015.md) - [KRS § 140.020 140.020 Taxation of transfers made in contemplation of death -- Revocable trusts -- Presumption of contemplation -- When presumption does not apply](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.020.md) - [KRS § 140.030 140.030 Taxation of contracts in contemplation of death -- Proceeds of life insurance policies -- Exemptions](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.030.md) - [KRS § 140.040 140.040 Taxation of transfers by power of appointment -- When transfer deemed to take place -- Date as of which value of property determined -- Remainder interests -- Rates and exemptions](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.040.md) - [KRS § 140.050 140.050 Taxation of surviving owner of a joint interest](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.050.md) - [KRS § 140.060 140.060 Exemption of transfers to educational, religious and charitable institutions, and to cities and public institutions](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.060.md) - [KRS § 140.063 140.063 Exemption of annuities or other payments under employees' trusts -- Retirement annuities -- Individual retirement bonds, accounts, and annuities](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.063.md) - [KRS § 140.070 140.070 Inheritance tax rates](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.070.md) - [KRS § 140.080 140.080 Exemptions of inheritable interests](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.080.md) - [KRS § 140.090 140.090 Deductions allowed from distributive shares](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.090.md) - [KRS § 140.095 140.095 Credit in case same property passes again within five years](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.095.md) - [KRS § 140.100 140.100 Valuation of future and contingent estates -- Taxation of life estates -- Valuation of surviving spouse's interest in trust or life estate](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.100.md) - [KRS § 140.110 140.110 Taxation of contingent and defeasible estates](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.110.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C140_S140.080. 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