Beneficiaries of a will in Kentucky may be subject to the Kentucky inheritance tax. The inheritance tax is different from an estate tax--which was repealed in Kentucky in 2002--because it is paid by the beneficiaries rather than the estate. Whether a tax comes out of an estate or a legacy, however, most people making wills would prefer to avoid taxes on inheritance if at all possible. Only six states in the country impose an inheritance tax, and each state's tax is different. The taxes can be significant, and inheritance tax rates in Kentucky vary depending on the beneficiary and the amount of the bequest. Estate planning involving Kentucky property and Kentucky residents should be handled by an experienced Kentucky probate attorney to minimize or avoid taxes on inheritance.