Request By:
Paul J. Vesper
Attorney and Counselor at Law
28 West Fifth Street
Covington, Kentucky 41011
Opinion
Opinion By: Robert F. Stephens, Attorney General; By William S. Riley, Assistant Attorney General
In your recent letter to the Attorney General two questions are asked as follows:
(1) Is the transfer of real property by a parent to a trustee where the property is held in trust for the sole and exclusive use and benefit of the children of said parent a transfer of title exempt from the tax imposed by KRS 142.050?
Answer: It would appear that this type of transfer is similar to the one discussed in OAG 68-414, a copy of which is attached to this letter. Under such circumstances, there would be no transfer tax due.
(2) In the same type of trust referred to in Question 1, would the transfer of real property by the trustee and succeeding trustee be exempt?
Answer: The answer to this question depends upon to whom the transfer is made. If the transfer is made to a child or children of the original transferor, there would be no tax. However, if made to another person or persons, not members of the transferor's family, transfer tax would apply.