Estate of McVey v. Department of Revenue

OPINION OF THE COURT BY

JUSTICE NOBLE

This case -raises three legal questions. First, does a reviewing court owe any deference to the Kentucky Board of Tax Appeals as to questions of law? Second, may inheritance taxes paid as a “cost of administration” under a will’s tax-exoneration provision be deducted from the value of distributive shares under KRS 140.090 and thereby reduce the overall tax liability? And, third, is the payment of tax by an estate on behalf of a beneficiary under a tax-exoneration clause itself a taxable “bequest of tax”?

As to the first question, because the Board of Tax…