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.