Page:United States Statutes at Large Volume 115 Part 3.djvu/365

 PUBLIC LAW 107-134-^AN. 23, 2002 115 STAT. 2439 (i) does not contravene any Federal or State statute or the order of any court (or responsible administrative authority); and (ii) is in the best interest of the structured settlement payee or is appropriate in light of a hardship faced by the payee; and (B) the person acquiring the structured settlement pay- ment rights discloses to the structured settlement payee in advance of the structured settlement factoring transaction the amounts and due dates of the payments to be transferred, the aggregate amount to be transferred, the consideration to be received by the structured settlement payee for the transferred payments, the discounted present value of the transferred payments (including the present value as determined in the manner described in section 7520 of such Code), and the expenses required under the terms of the structured settlement factoring transaction to be paid by the structured settlement payee or deducted from the proceeds of such transaction. SEC. 116. PERSONAL EXEMPTION DEDUCTION FOR CERTAIN DIS- ABILITY TRUSTS. (a) IN GENERAL.— Subsection (b) of section 642 (relating to 26 USC 642. deduction for personal exemption) is amended to read as follows: "(b) DEDUCTION FOR PERSONAL EXEMPTION.— "(1) ESTATES. — An estate shall be allowed a deduction of $600. "(2) TRUSTS. — "(A) IN GENERAL.— Except as otherwise provided in this paragraph, a trust shall be allowed a deduction of $100. " (B) TRUSTS DISTRIBUTING INCOME CURRENTLY. — A trust which, under its governing instrument, is required to distribute all of its income currently shall be allowed a deduction of $300. " (C) DISABILITY TRUSTS.— "(i) IN GENERAL.^A qualified disability trust shall be allowed a deduction equal to the exemption amount under section 151(d), determined— "(I) by treating such trust as an individual described in section 151(d)(3)(C)(iii), and "(II) by applying section 67(e) (without the reference to section 642(b)) for purposes of determining the adjusted gross income of the trust, "(ii) QUALIFIED DISABILITY TRUST.— For purposes of clause (i), the term 'qualified disability trust' means any trust if— "(I) such trust is a disability trust described in subsection (c)(2)(B)(iv) of section 1917 of the Social Security Act (42 U.S.C. 1396p), and "(II) all of the beneficiaries of the trust as of the close of the taxable year are determined by the Commissioner of Social Security to have been disabled (within the meaning of section 1614(a)(3) of the Social Security Act, 42 U.S.C. 1382c(a)(3)) for some portion of such year.

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