A bill to allow a deduction for the amount of premiums paid on a life insurance contract the beneficiary of which is a trust established for the benefit of a disabled individual, and for other purposes.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to permit an individual income tax deduction of up to $7,500 of premiums paid or incurred by the taxpayer for a life insurance contract having as its exclusive beneficiary the trust of one disabled member of the taxpayer's family. Sets forth qualifying criteria for such contracts and for their beneficiary trusts, including a $750,000 limitation on transfers of contract proceeds to the trust. Excludes amounts of trust distributions from the gross income of the disabled individual when specified conditions are met, including income restrictions. Includes insurance contract proceeds in the gross estate of the trust beneficiary for estate tax purposes and excludes them from the estate of the contract holder.…