KRS 140.100 — Valuation of future and contingent estates -- Taxation of life estates -- Valuation of surviving spouse's interest in trust or life estate

(1) The Department of Insurance, on the application of the Department of Revenue,
shall determine, and certify in duplicate to the department, the value of any future or
contingent estate, income or interest therein, limited, contingent, dependent, or
determinable upon the lives of persons in being, upon the facts contained in the
application or other facts submitt ed by the department. No fee shall be charged by
the Department of Insurance for this service. The certificate shall be competent
evidence that the method of computation therein is correct.
(2) The value of every future, contingent, or limited estate, inco me, or interest for the
purpose of this chapter shall be determined by the rules, methods, and standards of
mortality and of value prescribed by the appropriate United States life mortality
tables for ascertaining the value of life estates, annuities, and remainder interests
except that the rate of interest assessed in computing the present value of all future
interests and contingencies shall be four percent (4%) per annum.
(3) When an annuity or a life estate is terminated by the death of the annuitant or life
tenant, and the tax upon such interest has not been fixed and determined, the value
of the interest for the purpose of taxation shall be that amount of the annuity or
income actually paid or payable to the annuitant or life tenant during the period f or
which the annuitant or life tenant was entitled to the annuity or was in possession of
the life estate. The tax on such annuities and life interests shall be payable out of the
corpus of the estate, unless otherwise provided under the terms of the will.
(4) Notwithstanding anything in this chapter to the contrary, the value of a surviving
spouse's interest in a trust or life estate which was exempt from Kentucky
inheritance tax in the first spouse's estate pursuant to an election made under KRS
140.080(1)(a) shall be deemed to be equal to the entire value of the property held in
the trust or life estate, at the surviving spouse's death, for Kentucky inheritance tax
purposes in the surviving spouse's estate.