KY HB147

Extends the deadline for filing inheritance and estate tax returns from 18 months to 36 months after the decedent's death, effective for deaths on or after August 1, 2026

Extends the payment deadline for inheritance and estate taxes from 18 months to 36 months after death for decedents dying on or after August 1, 2026

Maintains the 5% discount for early payment, adjusting the qualifying period from 9 months to 18 months for deaths on or after August 1, 2026

Interest on unpaid taxes will not accrue until after the 36-month deadline (previously 18 months) for deaths on or after August 1, 2026

Applies the extended 36-month timeline to installment payment elections, with interest on deferred taxes beginning at 36 months rather than 18 months after death