A bill to amend the Internal Revenue Code of 1954 to allow a deduction for purposes of the Federal estate tax for certain amounts left by the decedent to certain handicapped individuals.

Provides that the value of a taxable estate under the Internal Revenue Code shall be determined by deducting from the value of the gross estate an amount equal to the value of any interest in property which passes or has passed from the decedent to any handicapped individual who survives the decedent and who is: (1) the son or daughter of the decedent, or a descendant of either, (2) the stepson or stepdaughter of the decedent, or (3) the son or daughter of a brother or sister of the decedent. (Adds 26 U.S.C. 2057)

Disallows any interest as a deduction under this section to the extent that such amount exceeds the amount reasonably necessary for the care, treatment, and support of the handicapped individual for the remainder of his life.

Provides for the determination of whether or not such amount is excessive to be made by the Secretary of the Treasury or his delegate, taking into account: (1) the type of handicap of the individual to whom the interest passes or has passed, and (2) the age, health, and life expectancy of such individual.