Kentucky Board of Tax Appeals v. Estate of Porter

DAVIS, Commissioner.

This is an appeal from a judgment reversing that portion of an order of the Kentucky Tax Commission imposing an inheritance tax on proceeds of life insurance held in trust subject to a power of appointment. The factual background and legal principles are indistinguishable from those presented in Kentucky Trust Company, Executor, Etc. v. Department of Revenue, Commonwealth of Kentucky, Ky., 421 S.W.2d 854 (decided December 15, 1967).

The trial court correctly adjudged that the life insurance proceeds which passed into sub-trust A were exempt from inheritance tax by reason of…