Fiduciaries must pay income tax on the portion of income from an estate or trust not distributed or distributable to beneficiaries. The tax is calculated using a graduated rate of 2% to 6%.
Nonresident estates and trusts are subject to tax on income from Kentucky sources; from activities carried on in Kentucky; from performance of services in Kentucky; from real or tangible property located in Kentucky; and from partnership or s-corporation doing business in Kentucky. Income from intangibles attributed to nonresident beneficiaries is not taxable on the Kentucky Fiduciary Return.
Fiduciary Tax Laws are located in Chapter 141 of the Kentucky Revised Statutes.