Form 92A202 – Fill Out and Use This PDF

INSTRUCTIONS

This return is to be filed for estates (Kentucky resident or nonresident) when (1) the date of death is on or after July 1, 1998, (2) a Federal Estate and Gift Tax Return is required to be filed, and (3) the entire estate passes to beneficiaries listed in the following groups, either by contract (survivorship, payable on death, trust, etc.), the decedent’s will or the intestate laws of this state:

(1)Surviving spouse, parent

(2)Child (adult or infant)

child by blood, stepchild, child adopted during infancy, or child adopted during adulthood who was reared by the decedent during infancy

(3)Grandchild

issue of child by blood, stepchild, child adopted during infancy, or of a child adopted during adulthood who was reared by decedent during infancy

(4)Brother, sister (whole or half)

➤฀ Refer to KRS 140.080 for the above groups

(5)Exempt organizations—Refer to KRS 140.060

Exempt organizations include educational, religious or other institutions, societies, or associations, whose sole purpose is to carry on charitable, educational, or religious work. Also, cities, towns or public institutions in this state qualify as exempt organizations provided that any transfer to such an organization is for public purposes.

KRS 140.130 levies an estate tax. If the Kentucky inheritance tax due is not equal to or greater than Kentucky’s portion of the federal state death tax credit, the difference is due as an estate tax. If the date of death is on or after July 1, 1998, there is not any inheritance tax due for the above-named beneficiaries; therefore, if there is any federal state death tax credit, Kentucky’s portion is due as an estate tax.

☞If decedent died with a will, a copy must be submitted.

☞If property passes under a trust agreement, please submit a copy.

☞Lines 3 and 4 on the front should equal line 2.

☞A copy of the Federal Estate and GiftTax Return must be attached to this return.

☞A listing of all beneficiaries and their relationship to the decedant must be attached to this return.

☞Payment of any estate tax due must be attached to the face of the return. The check should be made payable to the “Kentucky State Treasurer.”

Interest and Penalties

If the tax is not paid within 18 months following the decedent’s date of death, interest shall be computed pursuant to KRS 131.010(6) from the expiration of the 18-month period until the tax is paid. There is no provision in the statute to waive interest. The interest rate for 1999 and 2000 is 8 percent; for 2001 is 10 percent; for 2002 is 6 percent; and for 2003 is 5 percent.

Penalties may also apply if the return is not filed within 18 months from the date of death.The most com- mon penalties are for late filing and late payment. The late filing penalty is 2 percent of the total tax due for each 30 days or fraction thereof that a tax return or report is late. The maximum penalty is 20 percent of the total tax due.The minimum is $10.The late payment penalty is 2 percent of the total tax due for each 30 days or fraction thereof that the payment is late. However, the late payment penalty is not applicable if at least 75 percent of the tax liability has been timely paid. The maximum penalty is 20 percent of the total tax due. The minimum is $10. These penalties may be waived if “reasonable cause” exists as men- tioned under KRS 131.180 and defined under KRS 131.010(9). The penalties accrue from the expiration of the stated 18-month period until paid. Additional penalties may apply pursuant to KRS 131.180. Payment

of the interest or penalties is to be made at the time the return is filed.