Kentucky · Foreign buyersKentucky nonresident alien real estate: residence, the eight-year escheat rule and inherited land

Kentucky's alien property statutes in KRS Chapter 381 distinguish by residence and citizenship intent. An alien, not an enemy, who has declared the intention to become a U.S. citizen in the form required by law may recover, inherit, hold and pass any interest in real or personal property as if a citizen (KRS 381.290). An alien who resides in Kentucky may take and hold land for a residence, for occupation by the alien or employees, or for any business, trade or manufacture, for as long as the alien remains a resident, with the same rights, remedies and exemptions as a citizen (KRS 381.320). Except as otherwise provided in the chapter, the real estate of a nonresident alien may be escheated to the state at any time after eight years from when the alien acquired title. An alien owner who becomes a U.S. citizen before the property is escheated – or a purchaser, lessee, heir or devisee who is a U.S. citizen and becomes the owner before escheat – takes and holds the property free of any claim of the state based on the former owner's alienage (KRS 381.300). Real estate that passes to a nonresident alien by descent or devise may be held and sold for eight years after the final settlement of the decedent's estate (KRS 381.330).