A bill to amend the Internal Revenue Code of 1954 to exempt from Federal income tax a trust established by a taxpayer for the purpose of providing care for certain mentally incompetent dependents of the taxpayer.

Amends the Internal Revenue Code to exempt from taxation the income of trusts established to care for mentally incompetent relatives. Excludes distributions from such trusts from the gross income of the beneficiary so long as the distribution is received by someone other than a family member of the grantor of the trust.