KRS 140.095 — Credit in case same property passes again within five years

(1) As used in this section the word "transfer" means a taxable transfer under the
provisions of KRS Chapter 140.
(2) Subject to the provisions of this section, any person to whom property is transferred
shall be allowed a credit against the tax imposed by KRS 140.070, if the property
was transferred to the immediate decedent within five (5) years prior to the death of
the immediate decedent and a tax paid on the prior transfer under the provisions of
KRS Chapter 140. To be entitled to such tax credit, the pers on claiming it shall
identify the property as having been so transferred and taxed or identify the property
as having been acquired in exchange for property so transferred and taxed.
(3) The tax credit shall be computed by allocating to that part of the pr eviously taxed
property, which is the subject of the immediate transfer, the proportionate part of
the tax paid on the prior transfer as the present value of the previously taxed
property transferred to the immediate beneficiary or distributee bears to the total
present value of all the property received by the immediate decedent from the prior
decedent which is transferred to all the immediate beneficiaries or distributees.
Provided, however, that the tax credit shall not exceed an amount equal to such
proportion of the total tax due on all property transferred to the immediate
beneficiary or distributee from the immediate decedent (computed before any tax
credit is applied) as the present value of the previously taxed property transferred to
the immediate beneficiary or distributee from the immediate decedent bears to the
present value (including any exemption allowed) of all property transferred to the
immediate beneficiary or distributee from the immediate decedent. If the estate of
the immediate decedent consists in part of property not previously transferred and
taxed as described in subsection (2), it shall be presumed for the purpose of this
subsection, unless the contrary clearly appears, that each distributive share of the
entire estate includes the same proportion of the previously taxed property as the
entire value of each share bears to the aggregate value of all the entire shares.