Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB803 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 803
5	5	December 8, 2023 - Introduced by Representatives TUSLER and O'CONNOR,
6	6	cosponsored by Senators WIMBERGER and KNODL. Referred to Committee on
7	7	Family Law.
8	8	*AUTHORS SUBJECT TO CHANGE*
9	9	AN ACT to repeal 701.0110 (1) (a), (b) and (c), 701.0405 (1) and 701.0418; to
10	10	renumber 701.0304, 701.0305 (1), 701.0305 (2), 701.0305 (3), 701.0602 (3) (b)
11	11	1., 701.0602 (3) (b) 2. and 701.0802 (5); to renumber and amend 701.0103
12	12	(24), 701.0110 (1) (intro.), 701.0302, 711.04 (1) and 766.58 (13) (b); to
13	13	consolidate, renumber and amend 701.0602 (3) (intro.), (a) and (b) (intro.);
14	14	to amend 30.541 (3) (d) 1. a., 101.9211 (4) (a) 1., 342.17 (4) (a) 1., 700.16 (1) (c),
15	15	700.27 (1) (d), 701.0103 (4), 701.0103 (9), 701.0103 (18), 701.0103 (21) (intro.),
16	16	701.0103 (23), 701.0103 (27), 701.0103 (30), 701.0109 (title), 701.0109 (3),
17	17	701.0110 (2), 701.0110 (3), 701.0111 (4), 701.0111 (5) (d), 701.0111 (6), 701.0203
18	18	(1), 701.0302 (title), 701.0303 (4), 701.0303 (5), 701.0303 (6) (intro.), 701.0303
19	19	(6) (a), 701.0303 (6) (b), 701.0303 (6) (c), 701.0303 (6) (d), 701.0402 (1) (e),
20	20	701.0408, 701.0410 (2), 701.0410 (3), 701.0411 (1), 701.0411 (2) (a), 701.0411 (2)
21	21	(b), 701.0411 (7), 701.0414 (4), 701.0415, 701.0416, 701.0505 (1) (a) 2., 701.0505
22	22	(2) (e) 3., 701.0602 (1), 701.0602 (4), 701.0702 (3), 701.0706 (2) (c), 701.0706 (2)
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38	38	ASSEMBLY BILL 803
39	39	(d), 701.0707 (2), 701.0813 (1), (2) (d) and (3) (a) (intro.), 701.0813 (2) (a),
40	40	701.0813 (3) (b), 701.0813 (5), 701.0817 (3) (b), 701.1005 (1), 701.1005 (2),
41	41	701.1009 (2), 701.1105 (1) (b), 701.1136 (1), 711.04 (2), 711.05 (2) (b), 711.06 (2)
42	42	(intro.), 711.06 (2) (b), 711.07 (3) (b), 711.13, 766.01 (9) (a), 766.31 (7) (b), 766.58
43	43	(13) (c), 766.59 (1), 766.63 (1), 851.21 (2) (e), 854.13 (1) (c), 856.29, 859.02 (3) and
44	44	865.08 (6); to repeal and recreate 701.0103 (21) (a) and (b), 701.0508,
45	45	701.0818 (2) (b) 2. h. and chapter 702; and to create 701.0102 (12m), 701.0103
46	46	(1m), 701.0103 (1n), 701.0103 (3) (c), 701.0103 (3m), 701.0103 (3r), 701.0103
47	47	(3u), 701.0103 (3x), 701.0103 (5g), 701.0103 (5w), 701.0103 (11p), 701.0103
48	48	(15m), 701.0103 (19m), 701.0103 (19r), 701.0103 (19v), 701.0103 (21m),
49	49	701.0103 (23m), 701.0109 (5), 701.0111 (5) (m), 701.0111 (7), 701.0113, 701.0201
50	50	(3) (km), 701.0201 (4), 701.0302 (1), 701.0303 (6) (e), 701.0304 (2), 701.0306,
51	51	701.0307 (title), 701.0308, 701.0401 (5m), 701.0411 (1m), 701.0411 (2) (intro.),
52	52	701.0509, 701.0605, 701.0704 (1) (g), 701.0802 (5) (b), 701.0802 (9), 701.0813 (3)
53	53	(c), 701.0813 (6) and (7), 701.0815 (3), 701.0816 (29), 701.0816 (30), subchapter
54	54	XIII of chapter 701 [precedes 701.1301], 711.03 (4m), 711.04 (1) (b), 711.04 (1)
55	55	(c), 711.04 (1) (d), 766.01 (9) (e), 766.01 (9) (f), 766.31 (7) (g), 766.58 (7) (c), 766.58
56	56	(13) (b) 2. and 3., 766.625, 766.70 (3) (dm), 814.66 (1) (o) and 905.03 (2m) of the
57	57	statutes; relating to: trust administration, the Uniform Powers of
58	58	Appointment Act, the Uniform Trust Decanting Act, disclosure of certain
59	59	digital property, and the classification of certain digital property as individual
60	60	property for purposes of determining marital property.
61	61	Analysis by the Legislative Reference Bureau
62	62	This bill makes several changes to the administration of trusts, the power to
63	63	decant trusts, the creation and exercise of powers of appointment, the disclosure of
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89	89	certain digital property, and the classification of digital property as individual
90	90	property for purposes of determining marital property. Important provisions of the
91	91	bill are summarized as follows:
92	92	Administration of trusts
93	93	The bill makes several technical changes to the administration and regulation
94	94	of trusts in the state, including the following:
95	95	1. The bill provides that notice given to any trustee when more than one person
96	96	is serving as trustee is considered to be given to all persons serving as trustee, except
97	97	that notice must be given to all corporations and attorneys that are serving as
98	98	trustee.
99	99	2. The bill expands the concept of representation in a trust proceeding. Under
100	100	the bill, a person holding a general power of appointment or a broad limited power
101	101	of appointment may represent and bind the interests of all persons whose interests
102	102	may be eliminated, regardless of whether there is a conflict of interest. A person
103	103	holding a nongeneral power of appointment may represent and bind the interests of
104	104	any person whose interest may be limited by the exercise of the power, provided there
105	105	is no conflict of interest. A presumptive remainder beneficiary may represent and
106	106	bind the interests of a contingent successor remainder beneficiary or a more remote
107	107	contingent successor beneficiary, regardless of whether the beneficiary lacks
108	108	capacity and provided there is no conflict of interest. If a presumptive remainder
109	109	beneficiary does not represent a more remote contingent successor remainder
110	110	beneficiary, a contingent successor remainder beneficiary may represent and bind a
111	111	more remote contingent successor remainder beneficiary. The bill also confirms that
112	112	a settlor can nominate in the trust instrument a designated representative to
113	113	represent and bind any beneficiary.
114	114	3. The bill allows for the creation of a trust without initially funding the trust.
115	115	To create such a trust, the bill requires a person to declare the intention to create a
116	116	trust with the intention that the trust will be funded by assets of the person who
117	117	created the trust or by another person with legal authority to fund the trust. Under
118	118	the bill, the person making the declaration is considered to have created the trust
119	119	regardless of whether the person funds the trust with the person's own assets.
120	120	4. The bill provides for the resolution of debts against a deceased settlor of a
121	121	trust that was revocable until the settlor's death. First, the bill provides that a
122	122	claimant must assert a claim for payment of a debt of a deceased settlor within any
123	123	applicable deadline established by law. A trustee of a trust that was revocable at the
124	124	settlor's death may shorten the time period and set a deadline for filing claims with
125	125	the trustee by publishing a legal notice or giving notice to a potential claimant. A
126	126	claim that was barred by a statute of limitations at the time of the deceased settlor's
127	127	death is barred and the claimant may not pursue a claim against the trustee, the
128	128	trust property, or recipients with respect to trust property. However, a claim not
129	129	barred by a statute of limitations at the time of the settlor's death is not barred
130	130	thereafter by a statute of limitations if the claim is filed by the deadline for filing a
131	131	claim after the death of the settlor. The deadlines established for filing a claim after
132	132	the death of the settlor do not extend the time for commencement of a claim beyond
133	133	the time provided by any statute of limitations applicable to that claim. Failure of - 4 -2023 - 2024 Legislature LRB-4872/1
134	134	KMS&JPC:cdc
135	135	ASSEMBLY BILL 803
136	136	a claimant to file a claim within applicable deadlines does not bar the claimant from
137	137	satisfying the claim, if not otherwise barred, from property other than trust property.
138	138	5. The bill further provides for the form and verification of claims against a
139	139	deceased settlor, the trustee response to claims against a deceased settlor, contest
140	140	and enforcement of claims against a deceased settlor, compromise of claims against
141	141	a deceased settlor, payment of claims against a deceased settlor, and the priority of
142	142	claims against a deceased settlor.
143	143	6. The bill provides that a trustee of a trust has an insurable interest in the life
144	144	of an insured under a life insurance policy that is owned by the trustee of the trust
145	145	acting in a fiduciary capacity or that designates the trust itself as the owner if, on
146	146	the date the policy is issued, the insured is a settlor of the trust or is an individual
147	147	in whom a settlor of the trust has, or would have if living at the time the life insurance
148	148	policy was issued, an insurable interest in the life of the insured and the life
149	149	insurance proceeds are primarily for the benefit of one or more trust beneficiaries
150	150	who either have an insurable interest in the life of the insured or have a substantial
151	151	interest engendered by love or affection in the continuation of the life of the insured
152	152	and, if the beneficiary does not have an insurable interest in the life of the insured,
153	153	are related to the insured as provided in the bill.
154	154	Uniform Trust Decanting Act
155	155	Current law allows a trustee to transfer the assets of a trust to a second trust
156	156	subject to certain requirements. The bill adopts the Uniform Trust Decanting Act
157	157	(UTDA). The UTDA, as adopted, replaces the current language governing the
158	158	transfer of assets to a second trust and makes several substantive changes to current
159	159	law.
160	160	The bill defines “decanting power” as the power to 1) modify the terms of a trust
161	161	or 2) distribute the property of a trust to a second trust. Under the bill, an authorized
162	162	fiduciary may exercise the decanting power. An “authorized fiduciary” is defined as
163	163	1) a trustee or another fiduciary, other than the settlor, that has discretion to
164	164	distribute or direct a trustee to distribute principal from a trust to a beneficiary; 2)
165	165	a special fiduciary appointed by a court to exercise the decanting power; 3) a trustee
166	166	or fiduciary that has the discretion or obligation to distribute property to
167	167	beneficiaries of a trust that has a beneficiary with a disability; or 4) a trust protector
168	168	who has been granted the decanting power.
169	169	The decanting power under this bill applies only to a trust that 1) is irrevocable
170	170	or revocable by the settlor only with the consent of the trustee or a person that has
171	171	an adverse interest in the revocation of the trust and 2) is not held solely for
172	172	charitable purposes. The bill specifies that a first-trust instrument is deemed to
173	173	include the decanting power unless the first-trust instrument explicitly prohibits or
174	174	restricts exercise of the decanting power. The UTDA provisions of the bill apply to
175	175	any trust created before, on, or after the effective date of the bill if the trust is
176	176	governed or administered under the law of this state.
177	177	Under current law, a trustee may only transfer assets to a second trust with
178	178	court approval or through a notice procedure. The current notice procedure requires
179	179	giving notice to the settlor, beneficiaries, and certain powerholders of a trust 30 days
180	180	prior to transferring assets from that first trust to a second trust. The bill requires - 5 -2023 - 2024 Legislature
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183	183	ASSEMBLY BILL 803
184	184	a similar 30-day notice for exercise of the decanting power, but requires notice to be
185	185	provided to additional powerholders and fiduciaries of the first trust as well as
186	186	powerholders and fiduciaries of the second trust and, for certain trusts with a
187	187	charitable interest, the attorney general. Under the bill, an exercise of the decanting
188	188	power is effective if the authorized fiduciary acted with reasonable care to comply
189	189	with the notice requirement, even if the fiduciary failed to provide notice to every
190	190	person entitled to notice.
191	191	In addition, under current law, a trustee may not appoint assets to a second
192	192	trust if a contribution to the first trust qualified for a marital or charitable deduction
193	193	for federal income, gift, or estate tax purposes and the second trust would prevent
194	194	the asset from qualifying for the deduction or reduce the amount of the deduction.
195	195	The bill retains this prohibition and expands it to other tax benefits, including
196	196	deductions for state income, gift, estate, and inheritance taxes and any tax benefit
197	197	for which a first trust is clearly designed to qualify. The bill also prohibits the use
198	198	of the decanting power to 1) increase an authorized fiduciary's compensation, 2)
199	199	relieve an authorized fiduciary from liability for breach of trust in a second-trust
200	200	instrument to a greater extent than in the first-trust instrument, or 3) reduce the
201	201	aggregate fiduciary liability of all fiduciaries of a second trust without court approval
202	202	or the consent of all of the qualified beneficiaries of a second trust.
203	203	The bill includes additional provisions about the decanting power for certain
204	204	types of trusts. Specifically, in a trust that has a beneficiary with a disability, an
205	205	authorized fiduciary may exercise the decanting power if the second trust is a special
206	206	needs trust that benefits the beneficiary with a disability and the authorized
207	207	fiduciary determines that exercise of the decanting power will further the purposes
208	208	of the first trust. Under the bill, a “special needs trust” means a trust that the trustee
209	209	believes would not be considered a resource for purposes of determining whether a
210	210	beneficiary with a disability is eligible for governmental benefits based on disability.
211	211	Also, if a first trust contains a charitable interest, a second trust may not diminish
212	212	the charitable interest, diminish the interest of an identified charitable organization
213	213	that holds the charitable interest, alter any charitable purpose stated in the
214	214	first-trust instrument, or alter any condition or restriction related to the charitable
215	215	interest. In addition, the bill specifies that the decanting power may be exercised
216	216	over an animal trust. An “animal trust” is defined under the bill as a trust created
217	217	to provide for the care of an animal that has a person appointed to enforce the trust
218	218	on behalf of the animal. If a first trust is an animal trust, a second trust must provide
219	219	that trust property may be applied only to its intended purpose for the period the first
220	220	trust benefitted the animal.
221	221	If the trust instrument for a second trust does not comply with all of the
222	222	requirements of the UTDA but the exercise of the decanting power would otherwise
223	223	be effective, then 1) any provision that is included in the second-trust instrument
224	224	in violation of the UTDA is void and 2) any provision omitted from the second-trust
225	225	instrument in violation of the UTDA is deemed to be included in the second-trust
226	226	instrument. - 6 -2023 - 2024 Legislature LRB-4872/1
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228	228	ASSEMBLY BILL 803
229	229	Uniform Powers of Appointment Act
230	230	The bill adopts the Uniform Powers of Appointment Act. Under the bill, a
231	231	“power of appointment” means a power that enables a powerholder acting in a
232	232	nonfiduciary capacity to designate a recipient of an ownership interest in or another
233	233	power of appointment over the appointive property. A power of appointment is
234	234	created only if the instrument creating the power governs the disposition of the
235	235	appointive property and the terms of the instrument manifest the donor's intention
236	236	to create in a powerholder a power of appointment over the appointive property
237	237	exercisable in favor of a permissible appointee. Under the bill, unless the terms of
238	238	the instrument creating the power of appointment state otherwise, a power of
239	239	appointment is presumed to be a presently exercisable power of appointment, an
240	240	exclusionary power of appointment, and a general power of appointment. An
241	241	“exclusionary power of appointment” means a power of appointment exercisable in
242	242	favor of one or more permissible appointees to the exclusion of the other permissible
243	243	appointees. A “general power of appointment” means a power of appointment
244	244	exercisable in favor of the powerholder, the powerholder's estate, a creditor of the
245	245	powerholder, or a creditor of the powerholder's estate. The bill provides, however,
246	246	that a power of appointment is presumed to be a nongeneral power of appointment
247	247	if the power is exercisable only at the powerholder's death and the permissible
248	248	appointees of the power are a defined and limited class that does not include the
249	249	powerholder's estate, the powerholder's creditors, or the creditors of the
250	250	powerholder's estate.
251	251	Under the bill, a power of appointment is exercised only if the instrument
252	252	exercising the power is valid under law, the terms of the instrument manifest the
253	253	powerholder's intent to exercise the power, and the instrument satisfies any
254	254	requirements of exercise imposed by the donor, if any. If a power of appointment is
255	255	vested in two or more persons, then the powerholders may only exercise the power
256	256	of appointment unanimously. Under the bill, a powerholder may exercise their
257	257	power of appointment by including a residuary clause in the powerholder's will, or
258	258	a comparable clause in the powerholder's revocable trust, if the will or trust
259	259	instrument manifests intent to do so, the power of appointment is a general power
260	260	of appointment, there is no gift-in-default clause in the instrument creating the
261	261	power of appointment, and the powerholder did not previously release the power of
262	262	appointment.
263	263	If the powerholder releases or fails to exercise a general power of appointment,
264	264	the bill provides that the gift-in-default clause controls the unappointed property
265	265	or, if there is no gift-in-default clause, the bill provides default rules for how the
266	266	unappointed property is disposed. A personal representative, trustee, or other
267	267	fiduciary who holds property subject to a power of appointment may administer the
268	268	appointive property as if the power of appointment was not exercised if the personal
269	269	representative, trustee, or other fiduciary has no notice of the existence of any
270	270	documentation of the powerholder purporting to exercise the power of appointment
271	271	by will or otherwise within six months after the death of the powerholder. - 7 -2023 - 2024 Legislature
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275	275	Classification of digital property as individual property
276	276	The bill establishes an exception to Wisconsin's general marital property law,
277	277	allowing digital property to be classified as individual property if the property meets
278	278	certain criteria. Under the bill, an account and the digital property held in an
279	279	account, including the content of electronic communications such as personal email,
280	280	that is created and maintained for personal use is classified as individual property,
281	281	unless either the account or the digital property in the account was not originally
282	282	created, purchased, or otherwise acquired exclusively for the personal, noneconomic
283	283	purposes of the account holder, or the account or the digital property in the account
284	284	has at any time been used for purposes other than the personal, noneconomic
285	285	purposes of the spouse holding the account. Under the bill, in the event of a sale,
286	286	exchange, or other disposition, all property received in exchange for that account, or
287	287	the digital property in the account, is classified as marital property; and, further,
288	288	income during marriage and after the determination date attributable to the
289	289	account, or the digital property in the account, is classified as marital property.
290	290	Disclosure of digital property
291	291	Under current law, a user may use an online tool to direct a custodian of digital
292	292	property to disclose or not to disclose to a designated recipient some or all of the user's
293	293	digital property in certain circumstances. If an online tool allows the user to modify
294	294	or delete a direction at all times, a direction regarding disclosure using an online tool
295	295	overrides a contrary direction by the user in a will, trust, power of attorney, or any
296	296	other governing instrument. If a user has not used an online tool or if the custodian
297	297	has not provided an online tool, the user may allow or prohibit disclosure to a
298	298	fiduciary of some or all of the user's digital property, including the content of
299	299	electronic communications sent or received by the user, in a will, trust, power of
300	300	attorney, or any other governing instrument.
301	301	The bill provides that a user may allow or prohibit the disclosure to a fiduciary
302	302	of some or all of the user's digital property in a consent instrument. A consent
303	303	instrument is defined as a written notarized document in physical or electronic form
304	304	evidencing the user's consent to the disclosure of the contents of electronic
305	305	communications to a then acting fiduciary. However, a direction regarding
306	306	disclosure using an online tool overrides a contrary direction by the user in a consent
307	307	instrument in the same way that an online tool overrides a will, trust, power of
308	308	attorney, or other governing instrument under current law.
309	309	For further information see the state fiscal estimate, which will be printed as
310	310	an appendix to this bill.
311	311	The people of the state of Wisconsin, represented in senate and assembly, do
312	312	enact as follows:
313	313	SECTION 1. 30.541 (3) (d) 1. a. of the statutes is amended to read:1 - 8 -2023 - 2024 Legislature LRB-4872/1
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315	315	SECTION 1 ASSEMBLY BILL 803
316	316	30.541 (3) (d) 1. a. Evidence satisfactory to the department of the appointment
317	317	of a trustee in bankruptcy, of a certification of trust under s. 701.1013 or the
318	318	appointment of a trustee, or of the issuance of domiciliary letters testamentary or
319	319	other letters authorizing the administration of a decedent's estate, letters of
320	320	guardianship, conservatorship, special administration, or letters of trust.
321	321	SECTION 2. 101.9211 (4) (a) 1. of the statutes is amended to read:
322	322	101.9211 (4) (a) 1. Evidence satisfactory to the department of the appointment
323	323	of a trustee in bankruptcy, of a certification of trust under s. 701.1013 or the
324	324	appointment of a trustee, or of the issuance of domiciliary letters testamentary or
325	325	other letters authorizing the administration of a decedent's estate, letters of
326	326	guardianship, conservatorship, special administration, or letters of trust.
327	327	SECTION 3. 342.17 (4) (a) 1. of the statutes is amended to read:
328	328	342.17 (4) (a) 1. Evidence satisfactory to the department of the issuance of the
329	329	letters testamentary or other letters authorizing the administration of an estate,
330	330	letters of guardianship, or letters of trust, appointment of a trustee in bankruptcy,
331	331	of a certification of trust under s. 701.1013 or the appointment of a testamentary
332	332	trustee, or of the appointment of the trustee in bankruptcy issuance of domiciliary
333	333	letters or other letters authorizing the administration of a decedent's estate,
334	334	guardianship, conservatorship, special administration, or trust;
335	335	SECTION 4. 700.16 (1) (c) of the statutes is amended to read:
336	336	700.16 (1) (c) If a future interest or trust is created by exercise of a power of
337	337	appointment, the permissible period is computed from the time the power of
338	338	appointment is exercised if the power of appointment is a general power of
339	339	appointment, as defined in s. 702.02 (5) 702.102 (7), even if the general power of
340	340	appointment is exercisable only by will. In the case of other powers of appointment
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368	368	SECTION 4
369	369	ASSEMBLY BILL 803
370	370	the permissible period is computed from the time the power of appointment is created
371	371	but facts at the time the power of appointment is exercised are considered in
372	372	determining whether the power of alienation is suspended beyond a life or lives in
373	373	being at the time of creation of the power of appointment plus 30 years.
374	374	SECTION 5. 700.27 (1) (d) of the statutes is amended to read:
375	375	700.27 (1) (d) “Power of appointment" has the meaning given in s. 702.02 (6)
376	376	702.102 (14).
377	377	SECTION 6. 701.0102 (12m) of the statutes is created to read:
378	378	701.0102 (12m) An account that is part of a qualified ABLE program under
379	379	section 529A (b) of the Internal Revenue Code.
380	380	SECTION 7. 701.0103 (1m) of the statutes is created to read:
381	381	701.0103 (1m) “Animal protector” means a person appointed in an animal trust
382	382	to enforce the trust on behalf of the animal or, if no such person is appointed in the
383	383	trust, a person appointed by the court for that purpose.
384	384	SECTION 8. 701.0103 (1n) of the statutes is created to read:
385	385	701.0103 (1n) “Animal trust” means a trust or an interest in a trust created to
386	386	provide for the care of one or more animals.
387	387	SECTION 9. 701.0103 (3) (c) of the statutes is created to read:
388	388	701.0103 (3) (c) Is an identified charitable organization that will or may receive
389	389	distributions under the terms of the trust.
390	390	SECTION 10. 701.0103 (3m) of the statutes is created to read:
391	391	701.0103 (3m) “Broad limited power of appointment” has the meaning given
392	392	in s. 702.102 (4).
393	393	SECTION 11. 701.0103 (3r) of the statutes is created to read:
394	394	1
395	395	2
396	396	3
397	397	4
398	398	5
399	399	6
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418	418	KMS&JPC:cdc
419	419	SECTION 11 ASSEMBLY BILL 803
420	420	701.0103 (3r) “Charitable interest” means an interest in a trust that satisfies
421	421	any of the following:
422	422	(a) It is held by an identified charitable organization and makes the
423	423	organization a qualified beneficiary.
424	424	(b) It benefits only charitable organizations and, if the interest were held by an
425	425	identified charitable organization, would make the organization a qualified
426	426	beneficiary.
427	427	(c) It is held solely for charitable purposes and, if the interest were held by an
428	428	identified charitable organization, would make the organization a qualified
429	429	beneficiary.
430	430	SECTION 12. 701.0103 (3u) of the statutes is created to read:
431	431	701.0103 (3u) “Charitable organization” means any of the following:
432	432	(a) A person, other than an individual, organized and operated exclusively for
433	433	charitable purposes.
434	434	(b) A government or governmental subdivision, agency, or instrumentality, to
435	435	the extent it holds funds exclusively for a charitable purpose.
436	436	SECTION 13. 701.0103 (3x) of the statutes is created to read:
437	437	701.0103 (3x) “Charitable purpose” means the relief of poverty, the
438	438	advancement of education or religion, the promotion of health, a municipal or other
439	439	governmental purpose, or another purpose the achievement of which is beneficial to
440	440	the community.
441	441	SECTION 14. 701.0103 (4) of the statutes is amended to read:
442	442	701.0103 (4) “Charitable trust" means a trust, or portion of a trust, created for
443	443	a charitable purpose described in s. 701.0405 (1). This subsection does not apply in
444	444	s. 701.1201.
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469	469	25 - 11 -2023 - 2024 Legislature
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471	471	KMS&JPC:cdc
472	472	SECTION 15
473	473	ASSEMBLY BILL 803
474	474	SECTION 15. 701.0103 (5g) of the statutes is created to read:
475	475	701.0103 (5g) “Court” means the court that is identified in s. 701.0203 (1).
476	476	SECTION 16. 701.0103 (5w) of the statutes is created to read:
477	477	701.0103 (5w) “Current beneficiary” means a beneficiary that on the date the
478	478	beneficiary's qualification is determined is a distributee or permissible distributee
479	479	of trust income or principal or is the holder of a presently exercisable general power
480	480	of appointment.
481	481	SECTION 17. 701.0103 (9) of the statutes is amended to read:
482	482	701.0103 (9) “General power of appointment" has the meaning given in s.
483	483	702.02 (5) 702.102 (7).
484	484	SECTION 18. 701.0103 (11p) of the statutes is created to read:
485	485	701.0103 (11p) “Identified charitable organization” means a charitable
486	486	organization that is expressly designated to receive distributions under the terms of
487	487	a charitable trust and that is not subject to a right of substitution by the settlor or
488	488	by any other party prior to the charitable organization becoming a current
489	489	beneficiary.
490	490	SECTION 19. 701.0103 (15m) of the statutes is created to read:
491	491	701.0103 (15m) “Issue” has the meaning given in s. 851.13.
492	492	SECTION 20. 701.0103 (18) of the statutes is amended to read:
493	493	701.0103 (18) “Power of appointment" has the meaning given in s. 702.02 (6)
494	494	702.102 (14).
495	495	SECTION 21. 701.0103 (19m) of the statutes is created to read:
496	496	701.0103 (19m) “Powerholder” has the meaning given in s. 702.102 (15).
497	497	SECTION 22. 701.0103 (19r) of the statutes is created to read:
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499	499	2
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519	519	22
520	520	23
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522	522	KMS&JPC:cdc
523	523	SECTION 22 ASSEMBLY BILL 803
524	524	701.0103 (19r) “Presently exercisable power of appointment” has the meaning
525	525	given in s. 702.102 (16).
526	526	SECTION 23. 701.0103 (19v) of the statutes is created to read:
527	527	701.0103 (19v) “Presumptive remainder beneficiary” means, without
528	528	considering the existence or exercise of a power of appointment, other than a power
529	529	of appointment that has been irrevocably exercised and notice of the exercise has
530	530	been given to the trustee, a beneficiary that on the date the beneficiary's qualification
531	531	is determined, would be any of the following:
532	532	(a) A distributee or permissible distributee of trust income or principal if the
533	533	interests of any current beneficiary terminated on that date without causing the
534	534	trust to terminate.
535	535	(b) A distributee or permissible distributee of trust income or principal if the
536	536	trust terminated on that date.
537	537	(c) If the terms of the trust do not provide for its termination, a distributee or
538	538	permissible distributee of income or principal of the trust if all the current
539	539	beneficiaries of the trust were deceased or no longer exist.
540	540	SECTION 24. 701.0103 (21) (intro.) of the statutes is amended to read:
541	541	701.0103 (21) (intro.) “Qualified beneficiary" means a beneficiary who that, on
542	542	the date on which the beneficiary's qualification is determined, satisfies is any of the
543	543	following:
544	544	SECTION 25. 701.0103 (21) (a) and (b) of the statutes are repealed and recreated
545	545	to read:
546	546	701.0103 (21) (a) A current beneficiary.
547	547	(b) A presumptive remainder beneficiary.
548	548	SECTION 26. 701.0103 (21m) of the statutes is created to read:
549	549	1
550	550	2
551	551	3
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569	569	21
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571	571	23
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573	573	25 - 13 -2023 - 2024 Legislature
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575	575	KMS&JPC:cdc
576	576	SECTION 26
577	577	ASSEMBLY BILL 803
578	578	701.0103 (21m) “Record” means information that is inscribed on a tangible
579	579	medium or that is stored in an electronic or other medium and is retrievable in
580	580	perceivable form.
581	581	SECTION 27. 701.0103 (23) of the statutes is amended to read:
582	582	701.0103 (23) “Settlor" Except as otherwise provided in ss. 701.0113 and
583	583	701.1325, “settlor” means a person, including a testator, who creates or contributes
584	584	property to a trust. If more than one person creates or contributes property to a trust,
585	585	each person is a settlor of the portion of the trust property attributable to that
586	586	person's contribution except to the extent another person has the power to revoke the
587	587	trust or withdraw that portion.
588	588	SECTION 28. 701.0103 (23m) of the statutes is created to read:
589	589	701.0103 (23m) “Sign” means, with present intent to authenticate or adopt a
590	590	record, to do any of the following:
591	591	(a) Execute or adopt a tangible symbol.
592	592	(b) Attach to or logically associate with the record an electronic symbol, sound,
593	593	or process.
594	594	SECTION 29. 701.0103 (24) of the statutes is renumbered 701.0103 (16m) and
595	595	amended to read:
596	596	701.0103 (16m) “Special “Nongeneral power of appointment" has the meaning
597	597	given in s. 702.02 (7) 702.102 (11).
598	598	SECTION 30. 701.0103 (27) of the statutes is amended to read:
599	599	701.0103 (27) “Terms of a trust" means the manifestation of the settlor's intent
600	600	regarding a trust's provisions as expressed in the trust instrument or, as may be
601	601	established by other evidence that would be admissible in a judicial proceeding, or
602	602	as may be established by court order or nonjudicial settlement agreement.
603	603	1
604	604	2
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623	623	21
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627	627	25 - 14 -2023 - 2024 Legislature LRB-4872/1
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629	629	SECTION 31 ASSEMBLY BILL 803
630	630	SECTION 31. 701.0103 (30) of the statutes is amended to read:
631	631	701.0103 (30) “Trust instrument" means an instrument, including any
632	632	amendments or modifications to the instrument under s. 701.0111 or subch. IV, that
633	633	is executed a record signed by the settlor that contains terms of to create a trust or
634	634	is created under a statute, judgment, or decree that orders property to be transferred
635	635	to a trustee to be administered for the benefit of a beneficiary, or by any person to
636	636	create a 2nd trust as provided under subch. XIII, that contains some or all of the
637	637	terms of the trust, and includes any amendments or modifications.
638	638	SECTION 32. 701.0109 (title) of the statutes is amended to read:
639	639	701.0109 (title) Methods and waiver of notice; waiver.
640	640	SECTION 33. 701.0109 (3) of the statutes is amended to read:
641	641	701.0109 (3) Notice under this chapter or, the sending of a document, or the
642	642	right to object granted under this chapter may be waived by the person to be notified
643	643	or, sent the document, or who has the right to object.
644	644	SECTION 34. 701.0109 (5) of the statutes is created to read:
645	645	701.0109 (5) If notice is given to a trustee and more than one person is serving
646	646	as trustee, notice given to any trustee is considered to be given to all persons serving
647	647	as trustee, except that if a corporate trustee or an attorney licensed to practice in this
648	648	state is serving as a trustee, notice must be given to all such corporate trustees and
649	649	attorney trustees.
650	650	SECTION 35. 701.0110 (1) (intro.) of the statutes is renumbered 701.0110 (1) and
651	651	amended to read:
652	652	701.0110 (1) A An identified charitable organization that is expressly
653	653	designated to receive distributions under the terms of a charitable trust and that is
654	654	not subject to a right of substitution by the settlor or by any other party prior to the
655	655	1
656	656	2
657	657	3
658	658	4
659	659	5
660	660	6
661	661	7
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667	667	13
668	668	14
669	669	15
670	670	16
671	671	17
672	672	18
673	673	19
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675	675	21
676	676	22
677	677	23
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681	681	KMS&JPC:cdc
682	682	SECTION 35
683	683	ASSEMBLY BILL 803
684	684	charitable organization becoming a distributee or permissible distributee of trust
685	685	income or principal has the rights of a qualified beneficiary under this chapter if the
686	686	identified charitable organization, on the date on which the identified charitable
687	687	organization's qualification is being determined, satisfies one of the following: is a
688	688	current beneficiary or a presumptive remainder beneficiary.
689	689	SECTION 36. 701.0110 (1) (a), (b) and (c) of the statutes are repealed.
690	690	SECTION 37. 701.0110 (2) of the statutes is amended to read:
691	691	701.0110 (2) A An animal protector or a person appointed to enforce a trust
692	692	created for the care of an animal or another a noncharitable purpose without an
693	693	ascertainable beneficiary as provided in either s. 701.0408 or 701.0409 has the rights
694	694	of a qualified beneficiary under this chapter.
695	695	SECTION 38. 701.0110 (3) of the statutes is amended to read:
696	696	701.0110 (3) The attorney general of this state has the rights of a qualified
697	697	beneficiary under this chapter with respect to a charitable trust having its principal
698	698	place of administration in this state only when the charitable interest to be
699	699	represented would qualify under sub. (1) but there is no identified charitable
700	700	organization has been expressly designated to receive distribution under the terms
701	701	of a charitable trust that would qualify under sub. (1).
702	702	SECTION 39. 701.0111 (4) of the statutes is amended to read:
703	703	701.0111 (4) A nonjudicial settlement agreement is valid only to the extent it
704	704	includes terms and conditions that could be properly approved, ordered, directed, or
705	705	otherwise determined by a court under this chapter or other applicable law.
706	706	SECTION 40. 701.0111 (5) (d) of the statutes is amended to read:
707	707	701.0111 (5) (d) The resignation or appointment of a trustee or the removal of
708	708	a trustee and replacement with a suitable successor trustee.
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734	734	KMS&JPC:cdc
735	735	SECTION 41 ASSEMBLY BILL 803
736	736	SECTION 41. 701.0111 (5) (m) of the statutes is created to read:
737	737	701.0111 (5) (m) The modification or termination of a trust.
738	738	SECTION 42. 701.0111 (6) of the statutes is amended to read:
739	739	701.0111 (6) Any interested person or other person affected may request a court
740	740	to approve a nonjudicial settlement agreement, to determine whether the
741	741	representation as provided in subch. III was adequate, or to determine whether the
742	742	agreement contains terms and conditions the court could have properly approved,
743	743	ordered, directed, or otherwise determined.
744	744	SECTION 43. 701.0111 (7) of the statutes is created to read:
745	745	701.0111 (7) Notice of any nonjudicial settlement agreement shall be given to
746	746	the settlor, if living, the trustee, each trust protector, and each directing party at least
747	747	30 days before the proposed effective date of the nonjudicial settlement agreement.
748	748	Notice is considered to be waived by any person who is a party to the agreement.
749	749	SECTION 44. 701.0113 of the statutes is created to read:
750	750	701.0113 Insurable interest of trustee. (1) In this section:
751	751	(a) “Relative” means a spouse or individual related within the 1st, 2nd, or 3rd
752	752	degree of kinship under s. 990.001 (16).
753	753	(b) “Settlor” means a person that executes a trust instrument and includes a
754	754	person for whom a fiduciary or agent is acting.
755	755	(2) A trustee of a trust has an insurable interest in the life of an individual
756	756	insured under a life insurance policy that is owned by the trustee of the trust acting
757	757	in a fiduciary capacity or that designates the trust itself as the owner if, on the date
758	758	the policy is issued, all of the following apply:
759	759	(a) The insured is any of the following:
760	760	1. A settlor of the trust.
761	761	1
762	762	2
763	763	3
764	764	4
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766	766	6
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785	785	25 - 17 -2023 - 2024 Legislature
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787	787	KMS&JPC:cdc
788	788	SECTION 44
789	789	ASSEMBLY BILL 803
790	790	2. An individual in whom a settlor of the trust has, or would have had if living
791	791	at the time the policy was issued, an insurable interest.
792	792	(b) The life insurance proceeds are primarily for the benefit of one or more trust
793	793	beneficiaries who have any of the following:
794	794	1. An insurable interest in the life of the insured.
795	795	2. A substantial interest engendered by love or affection in the continuation of
796	796	the life of the insured and, if not included under subd. 1., the beneficiary is a relative
797	797	or stepchild of the insured.
798	798	SECTION 45. 701.0201 (3) (km) of the statutes is created to read:
799	799	701.0201 (3) (km) Releasing a trustee, directing party, trust protector, or other
800	800	person acting in a fiduciary capacity from liability for an action relating to the trust.
801	801	SECTION 46. 701.0201 (4) of the statutes is created to read:
802	802	701.0201 (4) Except as otherwise provided in this chapter, and as applicable,
803	803	the probate procedure described in ch. 879 applies to a proceeding brought by a
804	804	trustee, trust protector, directing party, or beneficiary concerning the administration
805	805	of a trust.
806	806	SECTION 47. 701.0203 (1) of the statutes is amended to read:
807	807	701.0203 (1) The circuit court assigned to exercise probate jurisdiction has
808	808	exclusive jurisdiction of proceedings in this state brought by a trustee, trust
809	809	protector, directing party, or beneficiary concerning the administration of a trust.
810	810	Except as otherwise provided in this chapter, and as applicable, the probate
811	811	procedure described in ch. 879 applies to a proceeding brought by a trustee, trust
812	812	protector, directing party, or beneficiary concerning the administration of a trust.
813	813	SECTION 48. 701.0302 (title) of the statutes is amended to read:
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839	839	SECTION 48 ASSEMBLY BILL 803
840	840	701.0302 (title) Representation by holder of general power of
841	841	appointment powerholder of certain powers of appointment .
842	842	SECTION 49. 701.0302 of the statutes is renumbered 701.0302 (2) and amended
843	843	to read:
844	844	701.0302 (2) To the extent there is no conflict of interest between a holder of
845	845	a general power of appointment powerholder and a person the persons represented
846	846	with respect to the particular question or dispute, the holder powerholder of a
847	847	nongeneral power of appointment other than a broad limited power of appointment
848	848	may represent and bind the person all persons or all members of a class of persons,
849	849	including permissible appointees and takers in default, whose interests, as a
850	850	permissible appointee, a taker in default, or otherwise, are subject to may be limited
851	851	by the exercise or nonexercise of the power.
852	852	SECTION 50. 701.0302 (1) of the statutes is created to read:
853	853	701.0302 (1) The powerholder of a general power of appointment exercisable
854	854	in favor of the powerholder or the powerholder's estate or the powerholder of a broad
855	855	limited power of appointment may represent and bind all persons, including
856	856	permissible appointees and takers in default, whose interests may be eliminated by
857	857	the exercise or nonexercise of the power. For purposes of this subsection, a general
858	858	power of appointment does not include powers of appointment exercisable only in
859	859	favor of the creditors of the powerholder, the creditors of the powerholder's estate,
860	860	or both.
861	861	SECTION 51. 701.0303 (4) of the statutes is amended to read:
862	862	701.0303 (4) A trustee may represent and bind the beneficiaries of the trust,
863	863	except as to matters relating to the administration or distribution of the trust.
864	864	SECTION 52. 701.0303 (5) of the statutes is amended to read:
865	865	1
866	866	2
867	867	3
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891	891	KMS&JPC:cdc
892	892	SECTION 52
893	893	ASSEMBLY BILL 803
894	894	701.0303 (5) A personal representative of a decedent's estate may represent
895	895	and bind a person interested in the estate, except as to matters relating to the
896	896	administration or distribution of the estate.
897	897	SECTION 53. 701.0303 (6) (intro.) of the statutes is amended to read:
898	898	701.0303 (6) (intro.) A parent may represent and bind the parent's minor or
899	899	unborn child, such child's minor and unborn issue, and the minor and unborn issue
900	900	of a then deceased child. If a disagreement arises between parents seeking to
901	901	represent the same minor child or unborn child individual, representation is
902	902	determined as follows:
903	903	SECTION 54. 701.0303 (6) (a) of the statutes is amended to read:
904	904	701.0303 (6) (a) If only one parent is a beneficiary of the trust that is the subject
905	905	of the representation, that parent may represent and bind the minor child or unborn
906	906	child, such child's minor and unborn issue, and the minor and unborn issue of a then
907	907	deceased child.
908	908	SECTION 55. 701.0303 (6) (b) of the statutes is amended to read:
909	909	701.0303 (6) (b) If both parents are beneficiaries of the trust that is the subject
910	910	of the representation, the parent who is related to the settlor, other than by reason
911	911	of being married to the other parent, may represent and bind the minor child or
912	912	unborn child, such child's minor and unborn issue, and the minor and unborn issue
913	913	of a then deceased child.
914	914	SECTION 56. 701.0303 (6) (c) of the statutes is amended to read:
915	915	701.0303 (6) (c) Subject to s. 701.0301 (4), if neither parent is a beneficiary of
916	916	the trust that is the subject of the representation, the parent who is the settlor of the
917	917	trust that is the subject of the representation may represent and bind the minor child
918	918	1
919	919	2
920	920	3
921	921	4
922	922	5
923	923	6
924	924	7
925	925	8
926	926	9
927	927	10
928	928	11
929	929	12
930	930	13
931	931	14
932	932	15
933	933	16
934	934	17
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936	936	19
937	937	20
938	938	21
939	939	22
940	940	23
941	941	24 - 20 -2023 - 2024 Legislature LRB-4872/1
942	942	KMS&JPC:cdc
943	943	SECTION 56 ASSEMBLY BILL 803
944	944	or unborn child, such child's minor and unborn issue, and the minor and unborn issue
945	945	of a then deceased child.
946	946	SECTION 57. 701.0303 (6) (d) of the statutes is amended to read:
947	947	701.0303 (6) (d) If neither parent is a beneficiary or settlor of the trust that is
948	948	the subject of the representation, the parent who is related to the settlor, other than
949	949	by reason of being married to the other parent, may represent and bind the minor
950	950	child or unborn child, such child's minor and unborn issue, and the minor and unborn
951	951	issue of a then deceased child.
952	952	SECTION 58. 701.0303 (6) (e) of the statutes is created to read:
953	953	701.0303 (6) (e) If an individual that is the subject of the representation is
954	954	eligible to be represented by more than one ancestor under this subsection, the
955	955	individual's nearest ancestor may represent and bind such individual.
956	956	SECTION 59. 701.0304 of the statutes is renumbered 701.0304 (1).
957	957	SECTION 60. 701.0304 (2) of the statutes is created to read:
958	958	701.0304 (2) (a) In this subsection:
959	959	1. “Contingent successor remainder beneficiary” means a beneficiary who
960	960	would succeed to the interest of a presumptive remainder beneficiary if the
961	961	presumptive remainder beneficiary and all of the current beneficiaries failed to take
962	962	such interest.
963	963	2. “More remote contingent successor remainder beneficiary” means any
964	964	contingent successor remainder beneficiary whose interest arises only upon the
965	965	failure of the interest of another contingent successor remainder beneficiary.
966	966	(b) A presumptive remainder beneficiary or a person authorized to represent
967	967	the presumptive remainder beneficiary under sub. (1) may represent and bind a
968	968	contingent successor remainder beneficiary or a more remote contingent successor
969	969	1
970	970	2
971	971	3
972	972	4
973	973	5
974	974	6
975	975	7
976	976	8
977	977	9
978	978	10
979	979	11
980	980	12
981	981	13
982	982	14
983	983	15
984	984	16
985	985	17
986	986	18
987	987	19
988	988	20
989	989	21
990	990	22
991	991	23
992	992	24
993	993	25 - 21 -2023 - 2024 Legislature
994	994	LRB-4872/1
995	995	KMS&JPC:cdc
996	996	SECTION 60
997	997	ASSEMBLY BILL 803
998	998	remainder beneficiary for the same purposes, in the same circumstances, and to the
999	999	same extent as an ascertainable beneficiary may represent and bind a minor or
1000	1000	person who is incapacitated, unborn, or not reasonably ascertainable.
1001	1001	(c) If a presumptive remainder beneficiary does not represent a more remote
1002	1002	contingent successor remainder beneficiary, a contingent successor remainder
1003	1003	beneficiary may represent and bind a more remote contingent successor remainder
1004	1004	beneficiary for the same purposes, in the same circumstances, and to the same extent
1005	1005	as an ascertainable beneficiary may represent and bind a minor or person who is
1006	1006	incapacitated, unborn, or not reasonably ascertainable.
1007	1007	(d) A contingent successor remainder beneficiary or a more remote contingent
1008	1008	successor remainder beneficiary may be represented under pars. (b) and (c) whether
1009	1009	or not the contingent successor remainder beneficiary or more remote contingent
1010	1010	successor remainder beneficiary lacks capacity.
1011	1011	(e) Under pars. (b) and (c), the difference between a beneficiary's interest as a
1012	1012	presumptive remainder beneficiary or contingent successor remainder beneficiary
1013	1013	does not constitute a conflict of interest as to any more remote contingent successor
1014	1014	remainder beneficiary.
1015	1015	SECTION 61. 701.0305 (1) of the statutes is renumbered 701.0305.
1016	1016	SECTION 62. 701.0305 (2) of the statutes is renumbered 701.0307 (1).
1017	1017	SECTION 63. 701.0305 (3) of the statutes is renumbered 701.0307 (2).
1018	1018	SECTION 64. 701.0306 of the statutes is created to read:
1019	1019	701.0306 Designated representative. (1) If specifically nominated in the
1020	1020	trust instrument, one or more persons may be designated to represent and bind a
1021	1021	beneficiary and receive any notice, information, accounting, or report. The trust
1022	1022	instrument may also authorize any one or more persons to designate one or more
1023	1023	1
1024	1024	2
1025	1025	3
1026	1026	4
1027	1027	5
1028	1028	6
1029	1029	7
1030	1030	8
1031	1031	9
1032	1032	10
1033	1033	11
1034	1034	12
1035	1035	13
1036	1036	14
1037	1037	15
1038	1038	16
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1040	1040	18
1041	1041	19
1042	1042	20
1043	1043	21
1044	1044	22
1045	1045	23
1046	1046	24
1047	1047	25 - 22 -2023 - 2024 Legislature LRB-4872/1
1048	1048	KMS&JPC:cdc
1049	1049	SECTION 64 ASSEMBLY BILL 803
1050	1050	persons to represent and bind a beneficiary and receive any notice, information,
1051	1051	accounting, or report.
1052	1052	(2) Except as otherwise provided in this chapter, a person designated in sub.
1053	1053	(1) may not represent and bind a beneficiary while that person is serving as trustee.
1054	1054	(3) Except as otherwise provided in this chapter, a person designated in sub.
1055	1055	(1) may not represent and bind another beneficiary if the person designated also is
1056	1056	a beneficiary, unless one of the following applies:
1057	1057	(a) That person was named by the settlor.
1058	1058	(b) That person is one of the following:
1059	1059	1. The beneficiary's spouse.
1060	1060	2. A grandparent or descendant of a grandparent of the beneficiary.
1061	1061	3. A grandparent or descendant of a grandparent of the beneficiary's spouse.
1062	1062	SECTION 65. 701.0307 (title) of the statutes is created to read:
1063	1063	701.0307 (title) Role of a representative or guardian ad litem.
1064	1064	SECTION 66. 701.0308 of the statutes is created to read:
1065	1065	701.0308 Liability of representative. No representative or guardian ad
1066	1066	litem is liable to the beneficiary whose interests are represented, or to anyone
1067	1067	claiming through that beneficiary, for any actions or omissions to act made in good
1068	1068	faith.
1069	1069	SECTION 67. 701.0401 (5m) of the statutes is created to read:
1070	1070	701.0401 (5m) A declaration of an intent to create a trust with the intention
1071	1071	that the trust will later be funded by assets of the person who created the trust or
1072	1072	by another person with legal authority to fund the trust. The person making the
1073	1073	declaration is considered to have created the trust, regardless of whether the person
1074	1074	funds the trust with the person's own assets.
1075	1075	1
1076	1076	2
1077	1077	3
1078	1078	4
1079	1079	5
1080	1080	6
1081	1081	7
1082	1082	8
1083	1083	9
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1094	1094	20
1095	1095	21
1096	1096	22
1097	1097	23
1098	1098	24
1099	1099	25 - 23 -2023 - 2024 Legislature
1100	1100	LRB-4872/1
1101	1101	KMS&JPC:cdc
1102	1102	SECTION 68
1103	1103	ASSEMBLY BILL 803
1104	1104	SECTION 68. 701.0402 (1) (e) of the statutes is amended to read:
1105	1105	701.0402 (1) (e) The same person is not the sole trustee and sole beneficiary,
1106	1106	and there are no remainder beneficiaries other than the person's estate.
1107	1107	SECTION 69. 701.0405 (1) of the statutes is repealed.
1108	1108	SECTION 70. 701.0408 of the statutes is amended to read:
1109	1109	701.0408 Trust for care of animal. (1) A An animal trust may be created
1110	1110	to provide for the care of an animal alive during the settlor's lifetime. The animal
1111	1111	trust terminates upon the death of the animal or, if the animal trust was created to
1112	1112	provide for the care of more than one animal alive during the settlor's lifetime, upon
1113	1113	the death of the last surviving animal.
1114	1114	(2) A An animal trust authorized by this section may be enforced by a person
1115	1115	appointed in the terms of the trust or, if no person is so appointed, by a person
1116	1116	appointed by the court an animal protector. A person having an interest in the
1117	1117	welfare of the animal may request the court to appoint a person to enforce the trust
1118	1118	or to remove a person appointed under this subsection an animal protector.
1119	1119	(3) Property of a an animal trust authorized by this section may be applied
1120	1120	only to its intended use, except to the extent the court determines that the value of
1121	1121	the animal trust property exceeds the amount required for the intended use.
1122	1122	Property not required for the intended use must be distributed to the settlor, if then
1123	1123	living, otherwise to the settlor's successors in interest.
1124	1124	SECTION 71. 701.0410 (2) of the statutes is amended to read:
1125	1125	701.0410 (2) A proceeding to approve or disapprove a proposed modification or
1126	1126	termination under ss. 701.0411 to 701.0416, or a proposed trust combination or
1127	1127	division under s. 701.0417, may be commenced by a trustee or beneficiary, and a
1128	1128	proceeding to approve or disapprove a proposed modification or termination under
1129	1129	1
1130	1130	2
1131	1131	3
1132	1132	4
1133	1133	5
1134	1134	6
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1152	1152	24
1153	1153	25 - 24 -2023 - 2024 Legislature LRB-4872/1
1154	1154	KMS&JPC:cdc
1155	1155	SECTION 71 ASSEMBLY BILL 803
1156	1156	s. 701.0411 may be commenced by the settlor. The settlor of a charitable trust may
1157	1157	maintain a proceeding to modify the trust under s. 701.0413. A Except as provided
1158	1158	in s. 701.0411 (1m), a trustee does not have standing to oppose a proposed
1159	1159	modification or termination commenced under s. 701.0411 (1).
1160	1160	SECTION 72. 701.0410 (3) of the statutes is amended to read:
1161	1161	701.0410 (3) A trustee may not be compelled by a modification or termination
1162	1162	under this section or under ss. 701.0411 to 701.0416 to make distributions to or for
1163	1163	any beneficiary of a trust for an individual with a disability or to terminate the trust,
1164	1164	during the lifetime of the individual with a disability. A court may modify the terms
1165	1165	of a trust for that has an individual with a disability as a beneficiary with retroactive
1166	1166	effect or reform the terms of such trust to achieve the settlor's objective or, if because
1167	1167	of circumstances not anticipated by the settlor, to otherwise further the purposes of
1168	1168	the trust so that it does not result in trust property being countable as resources or
1169	1169	income of the individual with a disability for purposes of public assistance.
1170	1170	SECTION 73. 701.0411 (1) of the statutes is amended to read:
1171	1171	701.0411 (1) A Except as provided in sub. (1m), a noncharitable irrevocable
1172	1172	trust may be modified or terminated, with or without court approval, upon consent
1173	1173	of the settlor and all beneficiaries, even if the modification or termination is
1174	1174	inconsistent with a material purpose of the trust. A settlor's power to consent to a
1175	1175	trust's modification or termination may be exercised by a representative under s.
1176	1176	701.0303 only if the representative is specifically authorized to consent to a trust's
1177	1177	modification or termination under a power of attorney, the terms of the trust, or by
1178	1178	a court under a guardianship or conservatorship.
1179	1179	SECTION 74. 701.0411 (1m) of the statutes is created to read:
1180	1180	1
1181	1181	2
1182	1182	3
1183	1183	4
1184	1184	5
1185	1185	6
1186	1186	7
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1198	1198	19
1199	1199	20
1200	1200	21
1201	1201	22
1202	1202	23
1203	1203	24 - 25 -2023 - 2024 Legislature
1204	1204	LRB-4872/1
1205	1205	KMS&JPC:cdc
1206	1206	SECTION 74
1207	1207	ASSEMBLY BILL 803
1208	1208	701.0411 (1m) A trust described in 42 USC 1396p (d) (4) may be terminated
1209	1209	or modified under sub. (1) only with consent of the trustee, and is not considered
1210	1210	revocable because it lacks ascertainable remainder beneficiaries.
1211	1211	SECTION 75. 701.0411 (2) (intro.) of the statutes is created to read:
1212	1212	701.0411 (2) (intro.) With the approval of the court, any of the following may
1213	1213	occur:
1214	1214	SECTION 76. 701.0411 (2) (a) of the statutes is amended to read:
1215	1215	701.0411 (2) (a) A noncharitable irrevocable trust may be terminated upon
1216	1216	consent of all of the beneficiaries if the court concludes that continuance of the trust
1217	1217	is not necessary to achieve any material purpose of the trust.
1218	1218	SECTION 77. 701.0411 (2) (b) of the statutes is amended to read:
1219	1219	701.0411 (2) (b) A noncharitable irrevocable trust may be modified upon
1220	1220	consent of all of the beneficiaries if the court concludes that modification is not
1221	1221	inconsistent with a material purpose of the trust.
1222	1222	SECTION 78. 701.0411 (7) of the statutes is amended to read:
1223	1223	701.0411 (7) A party proposing to modify or terminate a trust under sub. (1)
1224	1224	or, (2), or (6) shall give notice of the proposed modification or termination to the
1225	1225	settlor, if living, the trustee, each trust protector, each directing party, and each
1226	1226	beneficiary at least 30 days before the proposed effective date of the modification or
1227	1227	termination.
1228	1228	SECTION 79. 701.0414 (4) of the statutes is amended to read:
1229	1229	701.0414 (4) The court may modify or terminate a trust or remove the trustee
1230	1230	and appoint a different trustee if it determines that the value of the trust property
1231	1231	is insufficient to justify the cost of administration even if the trust property has a
1232	1232	total value in excess of the amount described in sub. (2).
1233	1233	1
1234	1234	2
1235	1235	3
1236	1236	4
1237	1237	5
1238	1238	6
1239	1239	7
1240	1240	8
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1242	1242	10
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1244	1244	12
1245	1245	13
1246	1246	14
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1248	1248	16
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1250	1250	18
1251	1251	19
1252	1252	20
1253	1253	21
1254	1254	22
1255	1255	23
1256	1256	24
1257	1257	25 - 26 -2023 - 2024 Legislature LRB-4872/1
1258	1258	KMS&JPC:cdc
1259	1259	SECTION 80 ASSEMBLY BILL 803
1260	1260	SECTION 80. 701.0415 of the statutes is amended to read:
1261	1261	701.0415 Reformation to correct mistakes. The court may reform the
1262	1262	terms of a trust, even if unambiguous, to conform the terms to the settlor's intent
1263	1263	intention if it is proved by clear and convincing evidence that both what the settlor's
1264	1264	intent intention was and that the terms of the trust were affected by a mistake of fact
1265	1265	or law, whether in expression or inducement. A party petitioning the court for action
1266	1266	under this section shall give notice of the proceeding to the settlor, if living, the
1267	1267	trustee, each trust protector, each directing party, and the qualified beneficiaries.
1268	1268	SECTION 81. 701.0416 of the statutes is amended to read:
1269	1269	701.0416 Modification or termination to achieve settlor's tax
1270	1270	objectives. To achieve the settlor's tax objectives, the court may modify the terms
1271	1271	of a trust or terminate a trust in a manner that is not contrary to the settlor's
1272	1272	probable intent. The court may provide that the modification or termination has
1273	1273	retroactive effect. A party petitioning the court for action under this section shall
1274	1274	give notice of the proceeding to the settlor, if living, the trustee, each trust protector,
1275	1275	each directing party, and the qualified beneficiaries.
1276	1276	SECTION 82. 701.0418 of the statutes is repealed.
1277	1277	SECTION 83. 701.0505 (1) (a) 2. of the statutes is amended to read:
1278	1278	701.0505 (1) (a) 2. With respect to an irrevocable trust that is not a trust for
1279	1279	an individual with a disability, upon application of a judgment creditor of the settlor,
1280	1280	the court may, if the trust instrument requires or authorizes the trustee to make
1281	1281	payments of income or principal to or for the settlor, order the trustee to satisfy part
1282	1282	or all of the judgment out of part or all of the payments of income or principal as they
1283	1283	are due, presently or in the future, or which are payable in the trustee's discretion.
1284	1284	A settlor's right to receive reimbursement for income taxation arising from grantor
1285	1285	1
1286	1286	2
1287	1287	3
1288	1288	4
1289	1289	5
1290	1290	6
1291	1291	7
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1293	1293	9
1294	1294	10
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1297	1297	13
1298	1298	14
1299	1299	15
1300	1300	16
1301	1301	17
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1305	1305	21
1306	1306	22
1307	1307	23
1308	1308	24
1309	1309	25 - 27 -2023 - 2024 Legislature
1310	1310	LRB-4872/1
1311	1311	KMS&JPC:cdc
1312	1312	SECTION 83
1313	1313	ASSEMBLY BILL 803
1314	1314	trust treatment of the trust pursuant to sections 671 to 679 of the Internal Revenue
1315	1315	Code is not considered a right to income or principal for purposes of this section. If
1316	1316	a trust has more than one settlor, the amount the judgment creditor of a particular
1317	1317	settlor may reach may not exceed the settlor's interest in the trust.
1318	1318	SECTION 84. 701.0505 (2) (e) 3. of the statutes is amended to read:
1319	1319	701.0505 (2) (e) 3. For purposes of this paragraph, notwithstanding s. 701.0103
1320	1320	(3), “beneficiary" means a person who satisfies s. 701.0103 (3) (a) or (b) and who is
1321	1321	designated in a trust instrument or through the exercise of a special nongeneral or
1322	1322	general power of appointment.
1323	1323	SECTION 85. 701.0508 of the statutes is repealed and recreated to read:
1324	1324	701.0508 Debts of deceased settlor. (1) DEADLINE ON CLAIMS. A claimant
1325	1325	must assert a claim for payment of a debt of a deceased settlor within the time for
1326	1326	such claims under applicable law. For purposes of this section, a debt incurred by
1327	1327	a trustee of a revocable trust before the death of a settlor of the revocable trust shall
1328	1328	be treated in the same manner as a debt of the settlor. A trustee of a trust that was
1329	1329	revocable at the settlor's death may shorten the time period and set a deadline for
1330	1330	filing claims with the trustee by doing any of the following:
1331	1331	(a) Publishing a legal notice as a class 3 notice under ch. 985 in the county in
1332	1332	which the deceased settlor resided. The legal notice shall identify the name, address,
1333	1333	and any other contact information of the trustee or other person with whom claims
1334	1334	must be filed. The deadline for a claim by any claimant who is not known by the
1335	1335	trustee shall be the earlier of the date that is 4 months after the date of the first
1336	1336	insertion of the legal notice or, if sub. (6) is applicable, the deadline prescribed under
1337	1337	s. 859.01.
1338	1338	1
1339	1339	2
1340	1340	3
1341	1341	4
1342	1342	5
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1346	1346	9
1347	1347	10
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1350	1350	13
1351	1351	14
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1358	1358	21
1359	1359	22
1360	1360	23
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1362	1362	KMS&JPC:cdc
1363	1363	SECTION 85 ASSEMBLY BILL 803
1364	1364	(b) Giving notice to a potential claimant. The notice shall include a copy of the
1365	1365	legal notice, if published, and shall identify the name, address, and any other contact
1366	1366	information of the trustee or other person with whom claims must be filed and shall
1367	1367	state that any claim by the potential claimant must be filed not later than the date
1368	1368	that is 30 days from the date notice is given to the potential claimant or the deadline
1369	1369	specified in the legal notice. If a legal notice has not been published, the deadline
1370	1370	shall be 4 months from the date the trustee provides notice to the potential claimant.
1371	1371	(c) Publishing a legal notice and not giving a separate notice to a potential
1372	1372	claimant who is known to the trustee. The deadline for a claim when a legal notice
1373	1373	has been published but notice is not given to a known potential claimant is the later
1374	1374	of the date that is one year from the date of the settlor's death or the deadline
1375	1375	specified in the legal notice.
1376	1376	(2) EXCEPTIONS TO DEADLINES ON CLAIMS. A claim that is not filed on or before
1377	1377	an applicable deadline specified under sub. (1) is not barred if the claim is a claim
1378	1378	based on tort, a marital property agreement that is subject to the time limitations
1379	1379	under s. 766.58 (13) (b) or (c), Wisconsin income, franchise, sales, withholding, gift,
1380	1380	or death taxes, unemployment compensation contributions due or benefits overpaid,
1381	1381	funeral or administrative expenses, a claim of this state under s. 46.27 (7g), 2017
1382	1382	stats., or s. 49.496, 49.682, or 49.849, or a claim of the United States.
1383	1383	(3) FILING OF CLAIMS. (a) A claim is considered filed if the claimant provides
1384	1384	notice of the claim to the trustee or other person with whom claims must be filed as
1385	1385	prescribed under s. 701.0508 (1) (a) or (b).
1386	1386	(b) A claim is considered filed if the deceased settlor is subject to a probate
1387	1387	proceeding in this state and a claim is filed with the court under ch. 859.
1388	1388	1
1389	1389	2
1390	1390	3
1391	1391	4
1392	1392	5
1393	1393	6
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1411	1411	24 - 29 -2023 - 2024 Legislature
1412	1412	LRB-4872/1
1413	1413	KMS&JPC:cdc
1414	1414	SECTION 85
1415	1415	ASSEMBLY BILL 803
1416	1416	(c) If an action is pending against a deceased settlor at the time of the settlor's
1417	1417	death and the action survives, the plaintiff in that action may serve a notice of
1418	1418	substitution of party defendant on the trustee and file proof of service of notice in the
1419	1419	court. Filing of proof of service on or before the deadline for filing a claim under sub.
1420	1420	(1) gives the plaintiff the same rights against the trust as the filing of a claim.
1421	1421	(4) EFFECT OF STATUTE OF LIMITATIONS. (a) A claim that was barred by a statute
1422	1422	of limitations at the time of the deceased settlor's death is barred and the claimant
1423	1423	may not pursue a claim against the trustee, the trust property, or recipients with
1424	1424	respect to trust property.
1425	1425	(b) A claim not barred by a statute of limitations at the time of the settlor's
1426	1426	death shall not be barred thereafter by a statute of limitations if the claim is filed on
1427	1427	or before the deadline for filing a claim under sub. (1).
1428	1428	(c) A claim that is not filed or is filed after the deadline for filing a claim under
1429	1429	sub. (1) is barred and the claimant may not pursue a claim against the trustee, the
1430	1430	trust property, or recipients with respect to trust property.
1431	1431	(d) The deadlines established under sub. (1) do not extend the time for
1432	1432	commencement of a claim beyond the time provided by any statute of limitations
1433	1433	applicable to that claim.
1434	1434	(5) SATISFACTION OF CLAIM FROM OTHER PROPERTY. Failure of a claimant timely
1435	1435	to file a claim as provided in this section does not bar the claimant from satisfying
1436	1436	the claim, if not otherwise barred, from property other than trust property.
1437	1437	(6) COORDINATION WITH PROBATE. If a legal notice has been published with
1438	1438	respect to the estate of a deceased settlor who died domiciled in this state, property
1439	1439	of a trust that was revocable at the settlor's death shall be treated as property of the
1440	1440	estate solely for purposes of administering claims under ch. 859. The trustee shall
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1466	1466	KMS&JPC:cdc
1467	1467	SECTION 85 ASSEMBLY BILL 803
1468	1468	be subject to the jurisdiction of the court in which the estate administration is
1469	1469	pending. A personal representative, as defined in s. 851.23, shall provide notice to
1470	1470	the trustee regarding claims filed against the estate. A claim barred under ch. 859
1471	1471	may not be satisfied from property of a trust that was revocable at the settlor's death.
1472	1472	The trustee and qualified beneficiaries shall have standing to file an objection, offset,
1473	1473	or counterclaim with respect to claims filed against the estate. Nothing in this
1474	1474	subsection causes property of the trust that otherwise would be exempt from claims
1475	1475	to be subject to claims filed against the settlor's estate. If the trust is not referenced
1476	1476	in a deceased settlor's will, the trustee of a trust that was revocable at the settlor's
1477	1477	death shall provide notice to a personal representative of the settlor's estate, if any,
1478	1478	of the existence of such trust.
1479	1479	SECTION 86. 701.0509 of the statutes is created to read:
1480	1480	701.0509 Procedures for claims for debts of a deceased settlor;
1481	1481	revocable trusts. (1) SCOPE OF APPLICABILITY. The procedures under this section
1482	1482	apply only to claims against a trust that was revocable by the settlor until the
1483	1483	settlor's death.
1484	1484	(2) FORM AND VERIFICATION OF CLAIMS; TRUSTEE RESPONSE TO CLAIMS. (a) General
1485	1485	requirements. A claim shall be in writing, shall describe the nature and amount of
1486	1486	the claim, if ascertainable, shall identify the name, address, and any other contact
1487	1487	information of the claimant, and shall be sworn to by the claimant or a person on the
1488	1488	claimant's behalf that the amount is justly due, or if not yet due, when it will or may
1489	1489	become due, that no payments have been made on the claim that are not credited,
1490	1490	and that there are no offsets to the knowledge of the affiant, except as stated in the
1491	1491	claim.
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1517	1517	KMS&JPC:cdc
1518	1518	SECTION 86
1519	1519	ASSEMBLY BILL 803
1520	1520	(b) Requirements when claim founded on written instrument. If a claim is
1521	1521	founded on a written instrument that is available, the original instrument or a copy
1522	1522	of the original instrument shall be attached to the claim.
1523	1523	(c) Trustee response to a claim. A trustee does not need to respond to a claim
1524	1524	until after the expiration of the deadline for filing a claim against the trust under s.
1525	1525	701.0508. Within 30 days after the later of the receipt of the claim or 30 days after
1526	1526	the expiration of the deadline, the trustee shall make a good faith determination of
1527	1527	whether the claim is valid, absolute, contingent, or invalid, or whether the trustee
1528	1528	will object to the claim, and the trustee shall inform the claimant of the
1529	1529	determination. If the trustee decides to object to the claim, the claim may be
1530	1530	compromised as provided in sub. (10) or contested as provided under sub. (11). If the
1531	1531	trustee determines the claim is invalid, the claimant may object to that
1532	1532	determination under sub. (11). If the trustee fails to respond within the applicable
1533	1533	period, the claim shall be presumed valid and the claimant may seek enforcement
1534	1534	under sub. (11).
1535	1535	(3) CLAIMS NOT DUE. If a claim will become due at some future time, the trustee
1536	1536	may, or the court with respect to a contested claim may order the trustee to, do any
1537	1537	of the following:
1538	1538	(a) Pay the claim in full.
1539	1539	(b) Pay the claim at the present value and in the same manner as in the case
1540	1540	of an absolute claim that has been allowed.
1541	1541	(c) Retain sufficient funds to satisfy the claim upon maturity.
1542	1542	(d) Obtain a bond to be given by the distributees for payment in satisfaction of
1543	1543	the claim and order the trust to be administered as if the claim had not been filed.
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1568	1568	KMS&JPC:cdc
1569	1569	SECTION 86 ASSEMBLY BILL 803
1570	1570	(4) SECURED CLAIMS. (a) When a claimant holds any security for a claim, the
1571	1571	security shall be described in the written claim given to the trustee. The security is
1572	1572	sufficiently described if the security document is described by date and by the
1573	1573	recording or filing data.
1574	1574	(b) Payment of the claim shall be made on the basis of one of the following:
1575	1575	1. If the creditor surrenders the security, the full amount of the claim.
1576	1576	2. If the creditor realizes on the security before receiving payment, upon the
1577	1577	full amount of the claim allowed less the fair value of the security.
1578	1578	(5) CONTINGENT CLAIMS. If the amount or validity of a claim cannot be
1579	1579	determined until some time in the future, the claim is a contingent claim regardless
1580	1580	of whether the claim is based on an event that occurred in the past or on an event that
1581	1581	may occur in the future. Except for claims of the type not required to be filed under
1582	1582	s. 701.0508 (2), contingent claims must be filed with the trustee as provided under
1583	1583	sub. (2). If the trustee determines the claim to be valid subject to the contingency,
1584	1584	the determination shall state the nature of the contingency. If the trustee determines
1585	1585	the claim to be valid and absolute before distribution of the trust, the claim shall be
1586	1586	paid in the same manner as absolute claims of the same class. In all other cases the
1587	1587	trustee, or the court in the case of a contested claim, may provide for the payment
1588	1588	of contingent claims in any of the following methods:
1589	1589	(a) The claimant and trustee may determine, by agreement, arbitration, or
1590	1590	compromise, the value of the claim, according to its probable present worth, and it
1591	1591	shall be paid in the same manner as a valid and absolute claim.
1592	1592	(b) The trustee may, or the court may order the trustee to, in the case of a
1593	1593	contested claim, make distribution of the trust but retain sufficient funds to pay the
1594	1594	claim if and when the same becomes absolute. For this purpose, the trust may not
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1620	1620	LRB-4872/1
1621	1621	KMS&JPC:cdc
1622	1622	SECTION 86
1623	1623	ASSEMBLY BILL 803
1624	1624	be required to remain intact longer than 2 years after distribution of the remainder
1625	1625	of the trust has been made, and if the claim has not become absolute within that time,
1626	1626	distribution shall be made to the distributees of the retained funds, after paying any
1627	1627	costs and expenses accruing during such period, but the distributees shall be liable
1628	1628	to the claimant to the extent provided in sub. (6), if the contingent claim thereafter
1629	1629	becomes absolute. When distribution is so made to distributees, the trustee or the
1630	1630	court may require the distributees to give bond for the satisfaction of their liability
1631	1631	to the contingent claimant.
1632	1632	(c) The trustee may require, or the court, in the case of a contested claim, may
1633	1633	order, distribution of the trust as though the contingent claim did not exist, but the
1634	1634	distributees shall be liable to the claimant as limited by sub. (7), if the contingent
1635	1635	claim thereafter becomes absolute. The trustee or the court may require the
1636	1636	distributees to give bond for the satisfaction of their liability to the contingent
1637	1637	claimant.
1638	1638	(d) Any other method the trustee determines or the court, in the case of a
1639	1639	contested claim, orders.
1640	1640	(6) PAYMENT OF CONTINGENT CLAIMS BY DISTRIBUTEES. If a contingent claim is filed
1641	1641	and the trustee determines the claim to be valid subject to the contingency and all
1642	1642	of the assets of the trust, including the fund set apart for the payment of the claim,
1643	1643	have been distributed, the claimant may recover on the claim against those
1644	1644	distributees, or the persons who furnish bond for the distributees, whose distributive
1645	1645	shares have been increased by reason of the fact that the amount of the claim as
1646	1646	finally determined was not paid prior to final distribution, if a proceeding for the
1647	1647	claim is commenced in court within 6 months after the claim becomes absolute. A
1648	1648	distributee or the person who furnishes bond for the distributee shall not be liable
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1674	1674	KMS&JPC:cdc
1675	1675	SECTION 86 ASSEMBLY BILL 803
1676	1676	for an amount exceeding that person's proportionate share of the trust subject to the
1677	1677	claim, nor for an amount greater than the value of the property that that person
1678	1678	received from the trust, the value to be determined as of the time of distribution to
1679	1679	the distributee.
1680	1680	(7) PRIORITY OF PAYMENT OF CLAIMS AND ALLOWANCES. (a) Classes and priority.
1681	1681	At the time a claim is determined to be valid, the claim shall be classified in one of
1682	1682	the categories under subds. 1. to 8. The trustee shall pay an absolute claim if the
1683	1683	trustee reasonably believes the assets of the trust are sufficient to pay the claim. If
1684	1684	the applicable assets of the trust are insufficient to pay the claim in full, the trustee
1685	1685	shall make payment in the following order:
1686	1686	1. Costs and expenses of administration.
1687	1687	2. Reasonable funeral and burial expenses.
1688	1688	3. Provisions for the family of the deceased settlor under ss. 861.31, 861.33, and
1689	1689	861.35, which sections are incorporated by reference and applied as if the trust is an
1690	1690	estate.
1691	1691	4. Reasonable and necessary expenses of the last illness of the deceased settlor,
1692	1692	including compensation of persons attending the deceased settlor.
1693	1693	5. All debts, charges, or taxes owing to the United States, this state, or a
1694	1694	governmental subdivision or municipality of this state.
1695	1695	6. Wages, including pension, welfare, and vacation benefits, due to employees
1696	1696	that have been earned within 3 months before the date of the death of the deceased
1697	1697	settlor, not to exceed $300 in value to each employee.
1698	1698	7. Property assigned to the surviving spouse or surviving domestic partner
1699	1699	under s. 861.41, which section is incorporated by reference and applied as if the trust
1700	1700	is an estate.
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1726	1726	LRB-4872/1
1727	1727	KMS&JPC:cdc
1728	1728	SECTION 86
1729	1729	ASSEMBLY BILL 803
1730	1730	8. All other claims allowed.
1731	1731	(b) No preference within classes. Preference shall not be given in the payment
1732	1732	of any claim over any other claim of the same class, nor shall a claim due and payable
1733	1733	be entitled to a preference over a claim not due.
1734	1734	(8) EXECUTION AND LEVIES PROHIBITED. Garnishment, attachment, or execution
1735	1735	shall not issue against, nor shall any levy be made against, any property of the trust
1736	1736	under any judgment or cause of action against a deceased settlor or the trustee, but
1737	1737	this subsection shall not be construed to prevent the enforcement of mortgages,
1738	1738	pledges, liens, or other security agreements upon real or personal property in an
1739	1739	appropriate proceeding.
1740	1740	(9) QUALIFIED BENEFICIARIES AND CLAIMANTS MAY BE INFORMED OF CLAIMS. After
1741	1741	the deadline for filing a claim against the trust under s. 701.0508, any qualified
1742	1742	beneficiary or claimant may make a written request to the trustee for a statement
1743	1743	listing all claims that have been filed against the trust. The statement provided by
1744	1744	the trustee shall show each claim, the name of the claimant, a brief description of the
1745	1745	basis of the claim, the amount claimed, and the trustee's determination of whether
1746	1746	the claim is valid, absolute, contingent, or invalid, or whether the trustee will object
1747	1747	to the claim in whole or in part. The trustee shall provide notice of the statement to
1748	1748	the requester, including any representative under subch. III within 5 business days
1749	1749	of the receipt of the request. The requester shall, within 5 business days of receiving
1750	1750	notice of the statement from the trustee, inform the trustee whether the requester
1751	1751	agrees or objects to the trustee's determination on whether to allow the claim in
1752	1752	whole or in part or whether to object to the claim. Failure on the part of any party
1753	1753	to comply with this subsection does not affect the jurisdiction of the court to intervene
1754	1754	in the administration of the claim.
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1780	1780	KMS&JPC:cdc
1781	1781	SECTION 86 ASSEMBLY BILL 803
1782	1782	(10) COMPROMISE OF CLAIMS. When a claim against a trust has been filed and
1783	1783	payment of the claim is pending, the claimant and trustee may, if it appears to be in
1784	1784	the best interest of the trust, compromise the claim, whether due or not due, absolute
1785	1785	or contingent, or liquidated or unliquidated. If an objection to the claim has been
1786	1786	filed by a qualified beneficiary or another claimant, no compromise of the claim may
1787	1787	be made without the consent of the objector.
1788	1788	(11) CONTEST AND ENFORCEMENT OF CLAIMS; COURT PROCEDURE. (a) Initiation.
1789	1789	Any person may initiate a court proceeding to contest or enforce a claim, object to
1790	1790	denial of a claim, or assert an offset or counterclaim, including the trustee, a qualified
1791	1791	beneficiary or representative under subch. III on behalf of a qualified beneficiary, or
1792	1792	a claimant. Such persons may initiate the court proceeding by petitioning the court
1793	1793	to exercise jurisdiction over the claim and any objection, offset, or counterclaim. The
1794	1794	petition shall be served upon or mailed to each person who has standing to object to
1795	1795	the claim and filed with the court within 60 days after the trustee's response or
1796	1796	failure to respond to the claim under sub. (2) (c), or, in the case of an objection by a
1797	1797	qualified beneficiary or representative of the qualified beneficiary or another
1798	1798	potential claimant, within 30 days after the copy of the claim was mailed to or served
1799	1799	upon the objector. The trustee shall not be obligated to assert any offset or
1800	1800	counterclaim in court and may, if the trustee deems it to be in the best interest of the
1801	1801	trust, assert the offset or counterclaim in any separate action otherwise authorized
1802	1802	by law outside the court proceedings. Any offset or counterclaim so asserted shall
1803	1803	be deemed denied by the original claimant.
1804	1804	(b) Procedure. If any claim, offset, or counterclaim is contested, the court may
1805	1805	require the issues to be made definite, fix a date for pretrial conference, and direct
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1830	1830	LRB-4872/1
1831	1831	KMS&JPC:cdc
1832	1832	SECTION 86
1833	1833	ASSEMBLY BILL 803
1834	1834	the manner in which pleadings, if any, shall be exchanged. The court shall set a time
1835	1835	for trial upon its own motion or upon the motion of any party.
1836	1836	(12) PROMPT JUDGMENT. The hearing on any contested claim, offset, or
1837	1837	counterclaim may be adjourned from time to time, but the hearing shall be concluded
1838	1838	as soon as practicable.
1839	1839	(13) JUDGMENT ON CLAIMS. The court shall enter a judgment on contested claims
1840	1840	and any offsets and counterclaims asserted, stating how much was allowed for or
1841	1841	against the trust in each case. The judgment shall set a date by which payment shall
1842	1842	be made. If the balance as to any claimant is in favor of the trust, the payment of the
1843	1843	claim may be enforced as with any other judgment.
1844	1844	(14) DELAY OF PAYMENT OF CLAIMS WHEN FUNDS ARE INSUFFICIENT. If it appears at
1845	1845	any time that the trust is or may be insolvent, that there are insufficient funds on
1846	1846	hand for payment of claims in full, or that there is other good cause for delaying
1847	1847	payment, the trustee shall provide notice of the delay to the claimants and any other
1848	1848	person with standing to object and may petition the court for any order that the
1849	1849	trustee deems necessary.
1850	1850	(15) CLAIMANT'S ACTION FOR PROPERTY FRAUDULENTLY TRANSFERRED BY DECEASED
1851	1851	SETTLOR. Whenever there is reason to believe that the assets of the trust may be
1852	1852	insufficient to pay the deceased settlor's debts, and the deceased settlor transferred
1853	1853	any property with intent to defraud the deceased settlor's creditors or to avoid any
1854	1854	duty, or executed conveyances void as against creditors, any claimant whose claim
1855	1855	has been allowed may, on behalf of all, bring an action to reach any property and
1856	1856	subject it to sale. The claimant's action shall not be brought to trial until the
1857	1857	insufficiency of the assets of the trust is ascertained. If it is found likely that the
1858	1858	assets may be insufficient, the action shall be brought to trial. If the action is tried,
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1884	1884	KMS&JPC:cdc
1885	1885	SECTION 86 ASSEMBLY BILL 803
1886	1886	any property that ought to be subjected to the payment of the debts of the deceased
1887	1887	settlor shall be sold in the action and the net proceeds used to pay such debts and to
1888	1888	reimburse the claimant for the reasonable expenses and attorney fees incurred by
1889	1889	the claimant in such action, as approved by the court.
1890	1890	(16) ENCUMBERED ASSETS; PAYMENT OF DEBT. (a) Rights of secured claimants not
1891	1891	affected. Nothing in this subchapter shall affect or prevent any action or proceeding
1892	1892	to enforce any mortgage, pledge, lien, or other security agreement against property
1893	1893	of the trust.
1894	1894	(b) Payment. When any property in the trust is encumbered by mortgage,
1895	1895	pledge, lien, or other security agreement, the trustee may pay the encumbrance or
1896	1896	any part of the encumbrance, renew or extend any obligation secured by the
1897	1897	encumbrance, or may convey or transfer the encumbered assets to the creditor in
1898	1898	satisfaction of the claimant's lien, in whole or in part, whether or not the holder of
1899	1899	the encumbrance has filed a claim.
1900	1900	(17) TORT CLAIMS. (a) Filed within time limited. If a claim based on a cause
1901	1901	of action in tort or for contribution resulting from a cause of action in tort is filed on
1902	1902	or before the deadline for filing a claim under s. 701.0508, the claimant will receive
1903	1903	the same protection in regard to payment as a claimant who has filed a required
1904	1904	claim.
1905	1905	(b) Not filed within time limited. A cause of action against a deceased settlor
1906	1906	in tort or for contribution resulting from a cause of action in tort is not defeated by
1907	1907	failure to file the claim or commence or continue an action against the trustee on or
1908	1908	before the deadline for filing a claim under s. 701.0508 against a trust, but the failure
1909	1909	to file the claim with the trustee relieves the trustee of all responsibility to protect
1910	1910	the rights of the claimant, and the claimant shall not be granted any of the
1911	1911	1
1912	1912	2
1913	1913	3
1914	1914	4
1915	1915	5
1916	1916	6
1917	1917	7
1918	1918	8
1919	1919	9
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1923	1923	13
1924	1924	14
1925	1925	15
1926	1926	16
1927	1927	17
1928	1928	18
1929	1929	19
1930	1930	20
1931	1931	21
1932	1932	22
1933	1933	23
1934	1934	24
1935	1935	25 - 39 -2023 - 2024 Legislature
1936	1936	LRB-4872/1
1937	1937	KMS&JPC:cdc
1938	1938	SECTION 86
1939	1939	ASSEMBLY BILL 803
1940	1940	protections under sub. (5). If the claim is determined to be valid and absolute
1941	1941	through court-approved settlement or adjudication and a certified copy of the
1942	1942	settlement or judgment is filed with the trustee and there are sufficient funds in the
1943	1943	trust to pay the claim, the claim shall be paid prior to the distribution of the trust.
1944	1944	After the trust has been distributed or if there are not sufficient funds in the trust,
1945	1945	a claimant whose claim has been determined to be valid and absolute through
1946	1946	court-approved settlement or through adjudication may proceed against the
1947	1947	distributees, but no distributee may be liable for an amount greater than that
1948	1948	allowed under sub. (6).
1949	1949	(18) PAYMENT OF UNFILED CLAIMS. A trustee may pay a debt of a deceased settlor
1950	1950	prior to the expiration of the deadline for filing claims under s. 701.0508 whether or
1951	1951	not a claim is filed if the trustee reasonably believes that the debt is owed and that
1952	1952	the assets of the trust are sufficient to satisfy all of the deceased settlor's debts.
1953	1953	(19) LAST ILLNESS AND FUNERAL EXPENSE OF DECEASED SPOUSE. The reasonable
1954	1954	expense of the last illness and funeral may, if properly presented, be paid by the
1955	1955	trustee of a deceased settlor's trust and, if so paid, shall be recognized as valid
1956	1956	expenditures even though the surviving spouse of the deceased settlor could have
1957	1957	been held liable for the expense.
1958	1958	SECTION 87. 701.0602 (1) of the statutes is amended to read:
1959	1959	701.0602 (1) Unless the terms of a trust expressly provide that the trust is
1960	1960	irrevocable, there is a rebuttable presumption that the settlor may revoke or amend
1961	1961	the trust. This subsection does not apply to a trust created under an instrument
1962	1962	executed before July 1, 2014.
1963	1963	SECTION 88. 701.0602 (3) (intro.), (a) and (b) (intro.) of the statutes are
1964	1964	consolidated, renumbered 701.0602 (3) (intro.) and amended to read:
1965	1965	1
1966	1966	2
1967	1967	3
1968	1968	4
1969	1969	5
1970	1970	6
1971	1971	7
1972	1972	8
1973	1973	9
1974	1974	10
1975	1975	11
1976	1976	12
1977	1977	13
1978	1978	14
1979	1979	15
1980	1980	16
1981	1981	17
1982	1982	18
1983	1983	19
1984	1984	20
1985	1985	21
1986	1986	22
1987	1987	23
1988	1988	24
1989	1989	25 - 40 -2023 - 2024 Legislature LRB-4872/1
1990	1990	KMS&JPC:cdc
1991	1991	SECTION 88 ASSEMBLY BILL 803
1992	1992	701.0602 (3) (intro.) A settlor may revoke or amend a revocable trust by any
1993	1993	of the following means: (a) By substantial compliance with a method provided in the
1994	1994	terms of the trust. (b) (intro.) If, or, if the terms of the trust do not provide a method,
1995	1995	by any of the following means:
1996	1996	SECTION 89. 701.0602 (3) (b) 1. of the statutes is renumbered 701.0602 (3) (am).
1997	1997	SECTION 90. 701.0602 (3) (b) 2. of the statutes is renumbered 701.0602 (3) (bm).
1998	1998	SECTION 91. 701.0602 (4) of the statutes is amended to read:
1999	1999	701.0602 (4) Upon revocation of a revocable trust, the trustee shall transfer the
2000	2000	trust property to the settlor or as the settlor directs. However, with respect to marital
2001	2001	or community property, the trustee shall transfer the property to both spouses as
2002	2002	marital or community property or as both spouses direct.
2003	2003	SECTION 92. 701.0605 of the statutes is created to read:
2004	2004	701.0605 Future interests in trust. Subject to s. 701.1204, unless a contrary
2005	2005	intention is found, if a person has a future interest in property under a revocable
2006	2006	trust and, under the terms of the trust, the person has the right to possession and
2007	2007	enjoyment of the property at the settlor's death, the right to possession and
2008	2008	enjoyment is contingent on the person surviving the settlor. Extrinsic evidence may
2009	2009	be used to show contrary intent.
2010	2010	SECTION 93. 701.0702 (3) of the statutes is amended to read:
2011	2011	701.0702 (3) A court may not require a bond from a trust company bank, state
2012	2012	bank, or national bank that is authorized to exercise trust powers and that has
2013	2013	complied with s. 220.09 or 223.02 nor shall a bond be required of a religious,
2014	2014	charitable, or educational corporation or society.
2015	2015	SECTION 94. 701.0704 (1) (g) of the statutes is created to read:
2016	2016	701.0704 (1) (g) Any other event occurs resulting in no person acting as trustee.
2017	2017	1
2018	2018	2
2019	2019	3
2020	2020	4
2021	2021	5
2022	2022	6
2023	2023	7
2024	2024	8
2025	2025	9
2026	2026	10
2027	2027	11
2028	2028	12
2029	2029	13
2030	2030	14
2031	2031	15
2032	2032	16
2033	2033	17
2034	2034	18
2035	2035	19
2036	2036	20
2037	2037	21
2038	2038	22
2039	2039	23
2040	2040	24
2041	2041	25 - 41 -2023 - 2024 Legislature
2042	2042	LRB-4872/1
2043	2043	KMS&JPC:cdc
2044	2044	SECTION 95
2045	2045	ASSEMBLY BILL 803
2046	2046	SECTION 95. 701.0706 (2) (c) of the statutes is amended to read:
2047	2047	701.0706 (2) (c) The court determines that removal Removal of the trustee best
2048	2048	serves the interests of the beneficiaries is appropriate because of unfitness,
2049	2049	unwillingness, or persistent failure of the trustee to administer the trust effectively.
2050	2050	SECTION 96. 701.0706 (2) (d) of the statutes is amended to read:
2051	2051	701.0706 (2) (d) There has been a substantial change of circumstances or
2052	2052	removal is requested by all of the qualified beneficiaries, the court finds that the
2053	2053	removal of the trustee best serves the interests of all of the beneficiaries and is not
2054	2054	inconsistent with a material purpose of the trust, and a suitable cotrustee or
2055	2055	successor trustee is available.
2056	2056	SECTION 97. 701.0707 (2) of the statutes is amended to read:
2057	2057	701.0707 (2) A trustee who has resigned or been removed shall proceed
2058	2058	expeditiously within a reasonable time to deliver the trust property within the
2059	2059	trustee's possession to the cotrustee, successor trustee, or other person entitled to it,
2060	2060	subject to the right of the trustee to retain a reasonable reserve for the payment of
2061	2061	debts, expenses, and taxes.
2062	2062	SECTION 98. 701.0802 (5) of the statutes is renumbered 701.0802 (5) (a).
2063	2063	SECTION 99. 701.0802 (5) (b) of the statutes is created to read:
2064	2064	701.0802 (5) (b) A trust company acting in any fiduciary capacity with respect
2065	2065	to a trust may purchase any service or product, including insurance or securities
2066	2066	underwritten or otherwise distributed by the trust company or by an affiliate,
2067	2067	through or directly from the trust company or an affiliate of a syndicate or selling
2068	2068	group that includes the trust company of an affiliate, provided the purchase
2069	2069	otherwise complies with the prudent investor rule in s. 881.01 and with s. 881.015.
2070	2070	Compensation for the service or product must be reasonable and not prohibited by
2071	2071	1
2072	2072	2
2073	2073	3
2074	2074	4
2075	2075	5
2076	2076	6
2077	2077	7
2078	2078	8
2079	2079	9
2080	2080	10
2081	2081	11
2082	2082	12
2083	2083	13
2084	2084	14
2085	2085	15
2086	2086	16
2087	2087	17
2088	2088	18
2089	2089	19
2090	2090	20
2091	2091	21
2092	2092	22
2093	2093	23
2094	2094	24
2095	2095	25 - 42 -2023 - 2024 Legislature LRB-4872/1
2096	2096	KMS&JPC:cdc
2097	2097	SECTION 99 ASSEMBLY BILL 803
2098	2098	the instrument governing the fiduciary relationship. The compensation for the
2099	2099	service or product may be in addition to the compensation that the trust company is
2100	2100	otherwise entitled to receive.
2101	2101	SECTION 100. 701.0802 (9) of the statutes is created to read:
2102	2102	701.0802 (9) A trustee is not liable for releasing information, including a copy
2103	2103	of all or any portion of the trust instrument, to any deceased settlor's heir-at-law or
2104	2104	other person indicating that the person is not a beneficiary of the trust if the trustee
2105	2105	reasonably believes that doing so will not harm the beneficiaries of the trust and that
2106	2106	doing so will reduce the likelihood of litigation involving the trust.
2107	2107	SECTION 101. 701.0813 (1), (2) (d) and (3) (a) (intro.) of the statutes are amended
2108	2108	to read:
2109	2109	701.0813 (1) A trustee shall keep the distributees or permissible distributees
2110	2110	of trust income or principal, current beneficiaries and other qualified presumptive
2111	2111	remainder beneficiaries who so request, reasonably informed about the
2112	2112	administration of the trust. Unless unreasonable under the circumstances, a trustee
2113	2113	shall promptly respond to a qualified beneficiary's request for information related to
2114	2114	the administration of the trust.
2115	2115	(2) (d) Notify the distributees or permissible distributees of trust income or
2116	2116	principal, current beneficiaries and other qualified presumptive remainder
2117	2117	beneficiaries who so request, of any change in the method or rate of the trustee's
2118	2118	compensation.
2119	2119	(3) (a) (intro.) At Subject to par. (c), at least annually and upon the termination
2120	2120	of a trust, a trustee shall send to the distributees or permissible distributees of trust
2121	2121	income or principal, current beneficiaries and to other qualified presumptive
2122	2122	remainder beneficiaries who request it, all of the following:
2123	2123	1
2124	2124	2
2125	2125	3
2126	2126	4
2127	2127	5
2128	2128	6
2129	2129	7
2130	2130	8
2131	2131	9
2132	2132	10
2133	2133	11
2134	2134	12
2135	2135	13
2136	2136	14
2137	2137	15
2138	2138	16
2139	2139	17
2140	2140	18
2141	2141	19
2142	2142	20
2143	2143	21
2144	2144	22
2145	2145	23
2146	2146	24
2147	2147	25 - 43 -2023 - 2024 Legislature
2148	2148	LRB-4872/1
2149	2149	KMS&JPC:cdc
2150	2150	SECTION 102
2151	2151	ASSEMBLY BILL 803
2152	2152	SECTION 102. 701.0813 (2) (a) of the statutes is amended to read:
2153	2153	701.0813 (2) (a) Upon the request of a qualified beneficiary for a copy of the
2154	2154	trust instrument, promptly furnish to the qualified beneficiary either a copy of the
2155	2155	portions of the trust instrument relating to the interest of the qualified beneficiary
2156	2156	or a copy of the trust instrument or, upon the request of a settlor for a copy of the trust
2157	2157	instrument, promptly furnish to the settlor a copy of the trust instrument.
2158	2158	SECTION 103. 701.0813 (3) (b) of the statutes is amended to read:
2159	2159	701.0813 (3) (b) Upon Subject to par. (c), upon a vacancy in a trusteeship, unless
2160	2160	a cotrustee remains in office, the former trustee shall send a report containing the
2161	2161	information described under par. (a) 1. to the qualified beneficiaries. A personal
2162	2162	representative or guardian may send the qualified beneficiaries a report containing
2163	2163	the information described in par. (a) 1. on behalf of a deceased or incapacitated
2164	2164	trustee.
2165	2165	SECTION 104. 701.0813 (3) (c) of the statutes is created to read:
2166	2166	701.0813 (3) (c) A trustee may limit the report to a qualified beneficiary of a
2167	2167	specific dollar amount or specific property to information that relates to the specific
2168	2168	dollar amount or specific property.
2169	2169	SECTION 105. 701.0813 (5) of the statutes is amended to read:
2170	2170	701.0813 (5) Subsections (2) (b) and, (c), and (d) and (3) do not apply to a trustee
2171	2171	who accepts a trusteeship before July 1, 2014, to an irrevocable trust created before
2172	2172	July 1, 2014, or to a revocable trust that becomes irrevocable before July 1, 2014.
2173	2173	SECTION 106. 701.0813 (6) and (7) of the statutes are created to read:
2174	2174	701.0813 (6) The trustee has no duty to provide information about the
2175	2175	administration of the trust to the settlor, but the trustee may provide such
2176	2176	information if the trustee chooses to do so.
2177	2177	1
2178	2178	2
2179	2179	3
2180	2180	4
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2197	2197	21
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2199	2199	23
2200	2200	24
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2202	2202	KMS&JPC:cdc
2203	2203	SECTION 106 ASSEMBLY BILL 803
2204	2204	(7) The trust instrument may expand, restrict, eliminate, or otherwise vary the
2205	2205	right of a beneficiary or class of beneficiaries to be informed of the beneficiary's
2206	2206	interest in a trust or to receive any or all information concerning the trust, and may
2207	2207	do so for any period of time, including for the lifetime of a beneficiary or a class of
2208	2208	beneficiaries. If there is no current acting representative of such a beneficiary or
2209	2209	class of beneficiaries in accordance with the trust instrument, and a provision to
2210	2210	appoint such a representative is not provided for in the trust instrument, the trustee
2211	2211	may appoint a representative for a beneficiary or class of beneficiaries whose rights
2212	2212	to information have been restricted or eliminated by the trust instrument.
2213	2213	SECTION 107. 701.0815 (3) of the statutes is created to read:
2214	2214	701.0815 (3) A trustee has no power to give warranties in a sale, mortgage, or
2215	2215	lease that are binding on the trustee personally.
2216	2216	SECTION 108. 701.0816 (29) of the statutes is created to read:
2217	2217	701.0816 (29) Fund a trust or account that meets the requirements under 42
2218	2218	USC 1396p (d) (4) (A) or (C) for the benefit of an individual with a disability.
2219	2219	SECTION 109. 701.0816 (30) of the statutes is created to read:
2220	2220	701.0816 (30) Fund an account that is part of an ABLE program under section
2221	2221	529A of the Internal Revenue Code for a beneficiary's benefit.
2222	2222	SECTION 110. 701.0817 (3) (b) of the statutes is amended to read:
2223	2223	701.0817 (3) (b) The beneficiary, at the time of the release, did not know of the
2224	2224	beneficiary's rights or have a reasonable opportunity to know of the material facts
2225	2225	relating to the breach.
2226	2226	SECTION 111. 701.0818 (2) (b) 2. h. of the statutes is repealed and recreated to
2227	2227	read:
2228	2228	1
2229	2229	2
2230	2230	3
2231	2231	4
2232	2232	5
2233	2233	6
2234	2234	7
2235	2235	8
2236	2236	9
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2239	2239	12
2240	2240	13
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2246	2246	19
2247	2247	20
2248	2248	21
2249	2249	22
2250	2250	23
2251	2251	24 - 45 -2023 - 2024 Legislature
2252	2252	LRB-4872/1
2253	2253	KMS&JPC:cdc
2254	2254	SECTION 111
2255	2255	ASSEMBLY BILL 803
2256	2256	701.0818 (2) (b) 2. h. Exercise a decanting power under subch. XIII or direct
2257	2257	an authorized fiduciary, as defined in s. 701.1302 (1), to exercise a decanting power
2258	2258	under subch. XIII.
2259	2259	SECTION 112. 701.1005 (1) of the statutes is amended to read:
2260	2260	701.1005 (1) A beneficiary may not commence a proceeding against a trustee
2261	2261	for breach of trust more than one year after the earlier of either the date on which
2262	2262	the beneficiary or a representative of the beneficiary waived the right to a report
2263	2263	under s. 701.0813 (4) or the date on which the beneficiary or a representative of the
2264	2264	beneficiary was sent a report or other record that adequately disclosed the existence
2265	2265	of a potential claim for breach of trust.
2266	2266	SECTION 113. 701.1005 (2) of the statutes is amended to read:
2267	2267	701.1005 (2) A report or other record adequately discloses the existence of a
2268	2268	potential claim for breach of trust if it provides sufficient information so that the
2269	2269	beneficiary or representative knows of the potential claim or should have inquired
2270	2270	into its existence.
2271	2271	SECTION 114. 701.1009 (2) of the statutes is amended to read:
2272	2272	701.1009 (2) At the time of the consent, release, or ratification, the beneficiary
2273	2273	did not have knowledge or a reasonable opportunity to obtain knowledge of the
2274	2274	beneficiary's rights or of the material facts relating to the breach.
2275	2275	SECTION 115. 701.1105 (1) (b) of the statutes is amended to read:
2276	2276	701.1105 (1) (b) Is given in the manner provided in ch. 879, except that notice
2277	2277	by publication is not required s. 701.0109.
2278	2278	SECTION 116. 701.1136 (1) of the statutes is amended to read:
2279	2279	701.1136 (1) DISTRIBUTION OF INCOME. Except as otherwise determined by the
2280	2280	trustee or a court under s. 701.1106 with respect to unitrust distributions, if a
2281	2281	1
2282	2282	2
2283	2283	3
2284	2284	4
2285	2285	5
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2287	2287	7
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2290	2290	10
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2293	2293	13
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2295	2295	15
2296	2296	16
2297	2297	17
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2299	2299	19
2300	2300	20
2301	2301	21
2302	2302	22
2303	2303	23
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2306	2306	KMS&JPC:cdc
2307	2307	SECTION 116 ASSEMBLY BILL 803
2308	2308	beneficiary is entitled to receive income from a trust, but the trust instrument fails
2309	2309	to specify how frequently it is to be paid a current beneficiary is to receive income
2310	2310	from the trust, the trustee shall distribute at least annually the income to which such
2311	2311	the current beneficiary is entitled at least annually.
2312	2312	SECTION 117. Subchapter XIII of chapter 701 [precedes 701.1301] of the
2313	2313	statutes is created to read:
2314	2314	CHAPTER 701
2315	2315	SUBCHAPTER XIII
2316	2316	UNIFORM TRUST DECANTING ACT
2317	2317	701.1301 Short title. This subchapter may be cited as the Uniform Trust
2318	2318	Decanting Act.
2319	2319	701.1302 Definitions. In this subchapter:
2320	2320	(1) “Authorized fiduciary” means any of the following:
2321	2321	(a) A trustee, a directing party, or another fiduciary, other than a settlor, that
2322	2322	has discretion to distribute or direct a trustee to distribute part or all of the principal
2323	2323	of the first trust to one or more current beneficiaries.
2324	2324	(b) A special fiduciary appointed under s. 701.1309.
2325	2325	(c) A special-needs fiduciary under s. 701.1313.
2326	2326	(d) A trust protector who has been granted a decanting power, which may be
2327	2327	exercised in a fiduciary or nonfiduciary capacity, under s. 701.0818 (2) (b) 2. h.
2328	2328	(2) “Decanting power” means the power of an authorized fiduciary under this
2329	2329	subchapter to distribute property of a first trust to one or more 2nd trusts or to modify
2330	2330	the terms of the first trust.
2331	2331	1
2332	2332	2
2333	2333	3
2334	2334	4
2335	2335	5
2336	2336	6
2337	2337	7
2338	2338	8
2339	2339	9
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2349	2349	19
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2352	2352	22
2353	2353	23 - 47 -2023 - 2024 Legislature
2354	2354	LRB-4872/1
2355	2355	KMS&JPC:cdc
2356	2356	SECTION 117
2357	2357	ASSEMBLY BILL 803
2358	2358	(3) “Expanded distributive discretion” means a discretionary power of
2359	2359	distribution that is not limited to an ascertainable standard or a reasonably definite
2360	2360	standard.
2361	2361	(4) “First trust” means a trust over which an authorized fiduciary may exercise
2362	2362	the decanting power.
2363	2363	(5) “First-trust instrument” means the trust instrument for a first trust.
2364	2364	(6) “Reasonably definite standard” means a clearly measurable standard
2365	2365	under which a holder of a power of distribution is legally accountable within the
2366	2366	meaning of section 674 (b) (5) (A) of the Internal Revenue Code and any applicable
2367	2367	regulations.
2368	2368	(7) “Second trust” means any of the following:
2369	2369	(a) A first trust after modification under this subchapter.
2370	2370	(b) A trust to which a distribution of property from a first trust is or may be
2371	2371	made under this subchapter.
2372	2372	(8) “Second-trust instrument” means the trust instrument for a 2nd trust.
2373	2373	701.1303 Scope. (1) Except as otherwise provided in subs. (2) and (3), this
2374	2374	subchapter applies to an express trust that is irrevocable or revocable by the settlor
2375	2375	only with the consent of the trustee or a person holding an adverse interest.
2376	2376	(2) This subchapter does not apply to a trust held solely for charitable purposes.
2377	2377	(3) Subject to s. 701.1315, a trust instrument may restrict or prohibit exercise
2378	2378	of the decanting power.
2379	2379	(4) This subchapter does not limit the power of an authorized fiduciary or other
2380	2380	person to distribute or appoint property in further trust or to modify a trust under
2381	2381	the trust instrument, law of this state other than this subchapter, common law, a
2382	2382	court order, or a nonjudicial settlement agreement.
2383	2383	1
2384	2384	2
2385	2385	3
2386	2386	4
2387	2387	5
2388	2388	6
2389	2389	7
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2395	2395	13
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2398	2398	16
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2409	2409	SECTION 117 ASSEMBLY BILL 803
2410	2410	(5) This subchapter does not affect the ability of a settlor to provide in a trust
2411	2411	instrument for the distribution of the trust property or appointment in further trust
2412	2412	of the trust property or for modification of the trust instrument.
2413	2413	701.1304 Fiduciary duty. (1) In exercising the decanting power, an
2414	2414	authorized fiduciary shall act in accordance with its fiduciary duties, including the
2415	2415	duty to act in accordance with the purposes of the first trust. If a trustee or other
2416	2416	authorized fiduciary is directed by another authorized fiduciary to exercise the
2417	2417	decanting power, the trustee or other directed authorized fiduciary shall act to
2418	2418	comply with the exercise of the decanting power and the trustee or other directed
2419	2419	authorized fiduciary shall not be liable for the action regardless of any fiduciary duty
2420	2420	that the trustee or other directed authorized fiduciary might otherwise have.
2421	2421	(2) This subchapter does not create or imply a duty to exercise the decanting
2422	2422	power or to inform beneficiaries about the applicability of this subchapter.
2423	2423	(3) Except as otherwise provided in a first-trust instrument, for purposes of
2424	2424	this subchapter and ss. 701.0801 and 701.0802 (2), the terms of the first trust are
2425	2425	deemed to include the decanting power.
2426	2426	701.1305 Application; governing law. This subchapter applies to a trust
2427	2427	created before, on, or after the effective date of this section .... [LRB inserts date], if
2428	2428	any of the following applies:
2429	2429	(1) The trust has its principal place of administration in this state, including
2430	2430	a trust whose principal place of administration has been changed to this state.
2431	2431	(2) The trust provides by its trust instrument that it is governed by the law of
2432	2432	this state or is governed by the law of this state for the purpose of any of the following:
2433	2433	(a) Administration, including administration of a trust whose governing law
2434	2434	for purposes of administration has been changed to the law of this state.
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2462	2462	SECTION 117
2463	2463	ASSEMBLY BILL 803
2464	2464	(b) Construction of terms of the trust.
2465	2465	(c) Determining the meaning or effect of terms of the trust.
2466	2466	701.1306 Reasonable reliance. A trustee or other person that reasonably
2467	2467	relies on the validity of a distribution of part or all of the property of a trust to another
2468	2468	trust, or a modification of a trust, under this subchapter, law of this state other than
2469	2469	this subchapter, or the law of another jurisdiction is not liable to any person for any
2470	2470	action or failure to act as a result of the reliance.
2471	2471	701.1307 Notice; exercise of decanting power. (1) In this section, a notice
2472	2472	period begins on the day notice is given under sub. (3) and ends 30 days after the day
2473	2473	notice is given.
2474	2474	(2) Except as otherwise provided in this subchapter, an authorized fiduciary
2475	2475	may exercise the decanting power without the consent of any person and without
2476	2476	court approval.
2477	2477	(3) Except as otherwise provided in sub. (6), an authorized fiduciary shall give
2478	2478	notice of the intended exercise of the decanting power not later than 30 days before
2479	2479	the exercise to all of the following:
2480	2480	(a) Each settlor of the first trust, if living or then in existence.
2481	2481	(b) Each qualified beneficiary of the first trust.
2482	2482	(c) Each holder of a presently exercisable power of appointment over any part
2483	2483	or all of the first trust.
2484	2484	(d) Each person that currently has the right to remove or replace the authorized
2485	2485	fiduciary.
2486	2486	(e) Each directing party, trust protector, or other fiduciary of the first trust.
2487	2487	(f) Each directing party, trust protector, or other fiduciary of the 2nd trust.
2488	2488	(g) If s. 701.1314 (2) applies, the attorney general.
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2515	2515	SECTION 117 ASSEMBLY BILL 803
2516	2516	(4) An authorized fiduciary is not required to give notice under sub. (3) to a
2517	2517	person that is not known to the fiduciary or is known to the fiduciary but cannot be
2518	2518	located by the fiduciary after reasonable diligence.
2519	2519	(5) A notice under sub. (3) must do all of the following:
2520	2520	(a) Specify the manner in which the authorized fiduciary intends to exercise
2521	2521	the decanting power.
2522	2522	(b) Specify the proposed effective date for exercise of the power.
2523	2523	(c) Include a copy of the first-trust instrument.
2524	2524	(d) Include a copy of all 2nd-trust instruments.
2525	2525	(6) The decanting power may be exercised before expiration of the notice period
2526	2526	under sub. (1) if all persons entitled to receive notice waive the period in a signed
2527	2527	record.
2528	2528	(7) The receipt of notice, waiver of the notice period, or expiration of the notice
2529	2529	period does not affect the right of a person to file an application under s. 701.1309
2530	2530	asserting any of the following:
2531	2531	(a) That an attempted exercise of the decanting power is ineffective because it
2532	2532	did not comply with this subchapter or was an abuse of discretion or breach of
2533	2533	fiduciary duty.
2534	2534	(b) That s. 701.1322 applies to the exercise of the decanting power.
2535	2535	(8) An exercise of the decanting power is not ineffective because of the failure
2536	2536	to give notice to one or more persons under sub. (3) if the authorized fiduciary acted
2537	2537	with reasonable care to comply with sub. (3).
2538	2538	701.1309 Court involvement. (1) On application of an authorized fiduciary,
2539	2539	a person entitled to notice under s. 701.1307 (3), a beneficiary, or with respect to a
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2566	2566	SECTION 117
2567	2567	ASSEMBLY BILL 803
2568	2568	charitable interest the attorney general or other person that has standing to enforce
2569	2569	the charitable interest, the court may do any of the following:
2570	2570	(a) Provide instructions to the authorized fiduciary regarding whether a
2571	2571	proposed exercise of the decanting power is permitted under this subchapter and
2572	2572	consistent with the fiduciary duties of the authorized fiduciary.
2573	2573	(b) Appoint a special fiduciary and authorize the special fiduciary to determine
2574	2574	whether the decanting power should be exercised under this subchapter and to
2575	2575	exercise the decanting power.
2576	2576	(c) Approve an exercise of the decanting power.
2577	2577	(d) Determine that a proposed or attempted exercise of the decanting power is
2578	2578	ineffective for any of the following reasons:
2579	2579	1. After applying s. 701.1322, the proposed or attempted exercise does not or
2580	2580	did not comply with this subchapter.
2581	2581	2. The proposed or attempted exercise would be or was an abuse of the
2582	2582	fiduciary's discretion or a breach of fiduciary duty.
2583	2583	3. The proposed or attempted exercise is expressly prohibited under the terms
2584	2584	of the first trust.
2585	2585	(e) Determine the extent to which s. 701.1322 applies to a prior exercise of the
2586	2586	decanting power.
2587	2587	(f) Provide instructions to the trustee regarding the application of s. 701.1322
2588	2588	to a prior exercise of the decanting power.
2589	2589	(g) Order other relief to carry out the purposes of this subchapter.
2590	2590	(2) On application of an authorized fiduciary, the court may approve any of the
2591	2591	following:
2592	2592	(a) An increase in the fiduciary's compensation under s. 701.1316.
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2619	2619	SECTION 117 ASSEMBLY BILL 803
2620	2620	(b) A modification under s. 701.1318 of a provision granting a person the right
2621	2621	to remove or replace the fiduciary.
2622	2622	701.1310 Formalities. An exercise of the decanting power must be made in
2623	2623	a record signed by an authorized fiduciary. The signed record must, directly or by
2624	2624	reference to the notice required by s. 701.1307, identify the first trust and the 2nd
2625	2625	trust or trusts and state the property of the first trust being distributed to each 2nd
2626	2626	trust and the property, if any, that remains in the first trust.
2627	2627	701.1311 Decanting power under expanded distributive discretion. (1)
2628	2628	In this section:
2629	2629	(a) “Noncontingent right” means a right that is not subject to the exercise of
2630	2630	discretion or the occurrence of a specified event that is not certain to occur. The term
2631	2631	does not include a right held by a beneficiary if any person has discretion to distribute
2632	2632	property subject to the right to any person other than the beneficiary or the
2633	2633	beneficiary's estate.
2634	2634	(b) “Successor beneficiary” means a beneficiary that is not a qualified
2635	2635	beneficiary on the date the beneficiary's qualification is determined. The term does
2636	2636	not include a person that is a beneficiary only because the person holds a nongeneral
2637	2637	power of appointment.
2638	2638	(c) “Vested interest” means any of the following:
2639	2639	1. A right to a mandatory distribution that is a noncontingent right as of the
2640	2640	date of the exercise of the decanting power.
2641	2641	2. A current and noncontingent right, annually or more frequently, to a
2642	2642	mandatory distribution of income, a specified dollar amount, or a percentage of value
2643	2643	of some or all of the trust property.
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2669	2669	KMS&JPC:cdc
2670	2670	SECTION 117
2671	2671	ASSEMBLY BILL 803
2672	2672	3. A current and noncontingent right, annually or more frequently, to withdraw
2673	2673	income, a specified dollar amount, or a percentage of value of some or all of the trust
2674	2674	property.
2675	2675	4. A presently exercisable general power of appointment.
2676	2676	5. A right to receive an ascertainable part of the trust property on the trust's
2677	2677	termination that is not subject to the exercise of discretion or to the occurrence of a
2678	2678	specified event that is not certain to occur.
2679	2679	(2) Subject to sub. (3) and s. 701.1314, an authorized fiduciary that has
2680	2680	expanded distributive discretion over the principal of a first trust for the benefit of
2681	2681	one or more current beneficiaries may exercise the decanting power over the
2682	2682	principal of the first trust.
2683	2683	(3) Subject to s. 701.1313, in an exercise of the decanting power under this
2684	2684	section, a 2nd trust may not do any of the following:
2685	2685	(a) Include as a current beneficiary a person that is not a current beneficiary
2686	2686	of the first trust, except as otherwise provided in sub. (4).
2687	2687	(b) Include as a presumptive remainder beneficiary or successor beneficiary a
2688	2688	person that is not a current beneficiary, presumptive remainder beneficiary, or
2689	2689	successor beneficiary of the first trust, except as otherwise provided in sub. (4).
2690	2690	(c) Reduce or eliminate a vested interest.
2691	2691	(d) Fail to be a trust described in 42 USC 1396p (d) (4) (A) or (C) if the first trust
2692	2692	is a trust described in 42 USC 1396p (d) (4) (A) or (C).
2693	2693	(4) Subject to sub. (3) (c) and s. 701.1314, in an exercise of the decanting power
2694	2694	under this section, a 2nd trust may be a trust created or administered under the law
2695	2695	of any jurisdiction and may do any of the following:
2696	2696	(a) Retain a power of appointment granted in the first trust.
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2722	2722	KMS&JPC:cdc
2723	2723	SECTION 117 ASSEMBLY BILL 803
2724	2724	(b) Omit a power of appointment granted in the first trust, other than a
2725	2725	presently exercisable general power of appointment.
2726	2726	(c) Create or modify a power of appointment if the powerholder is a current
2727	2727	beneficiary of the first trust and the authorized fiduciary has expanded distributive
2728	2728	discretion to distribute principal to the beneficiary.
2729	2729	(d) Create or modify a power of appointment if the powerholder is a
2730	2730	presumptive remainder beneficiary or successor beneficiary of the first trust, but the
2731	2731	exercise of the power may take effect only after the powerholder becomes, or would
2732	2732	have become if then living, a current beneficiary.
2733	2733	(5) A power of appointment described in sub. (4) (a) to (d) may be general or
2734	2734	nongeneral. The class of permissible appointees in favor of which the power may be
2735	2735	exercised may be broader than or different from the beneficiaries of the first trust.
2736	2736	(6) If an authorized fiduciary has expanded distributive discretion over part
2737	2737	but not all of the principal of a first trust, the fiduciary may exercise the decanting
2738	2738	power under this section over that part of the principal over which the authorized
2739	2739	fiduciary has expanded distributive discretion.
2740	2740	701.1312 Decanting power under limited distributive discretion. (1)
2741	2741	In this section, “limited distributive discretion” means a discretionary power of
2742	2742	distribution that is limited to an ascertainable standard or a reasonably definite
2743	2743	standard.
2744	2744	(2) An authorized fiduciary that has limited distributive discretion over the
2745	2745	principal of the first trust for the benefit of one or more current beneficiaries may
2746	2746	exercise the decanting power over the principal of the first trust.
2747	2747	(3) Under this section and subject to s. 701.1314, a 2nd trust may be created
2748	2748	or administered under the law of any jurisdiction. Under this section, the 2nd trusts,
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2775	2775	KMS&JPC:cdc
2776	2776	SECTION 117
2777	2777	ASSEMBLY BILL 803
2778	2778	in the aggregate, must grant each beneficiary of the first trust beneficial interests
2779	2779	that are substantially similar to the beneficial interests of the beneficiary in the first
2780	2780	trust.
2781	2781	(3m) Notwithstanding sub. (3), an authorized fiduciary exercising the
2782	2782	decanting power under this section may grant to a beneficiary of the 2nd trust a
2783	2783	testamentary power of appointment exercisable in favor of the creditors of the
2784	2784	beneficiary's estate, but only if the authorized fiduciary concludes the granting of
2785	2785	such power will be unlikely to adversely affect the beneficial interest of the
2786	2786	presumptive remainder beneficiaries of the first trust.
2787	2787	(4) A power to make a distribution under a 2nd trust for the benefit of a
2788	2788	beneficiary who is an individual is substantially similar to a power under the first
2789	2789	trust to make a distribution directly to the beneficiary. A distribution is for the
2790	2790	benefit of a beneficiary if any of the following applies:
2791	2791	(a) The distribution is applied for the benefit of the beneficiary.
2792	2792	(b) The beneficiary is under a legal disability or the trustee reasonably believes
2793	2793	the beneficiary is incapacitated, and the distribution is made as permitted under this
2794	2794	chapter.
2795	2795	(c) The distribution is made as permitted under the terms of the first-trust
2796	2796	instrument and the 2nd-trust instrument for the benefit of the beneficiary.
2797	2797	(5) If an authorized fiduciary has limited distributive discretion over part but
2798	2798	not all of the principal of a first trust, the fiduciary may exercise the decanting power
2799	2799	under this section over that part of the principal over which the authorized fiduciary
2800	2800	has limited distributive discretion.
2801	2801	701.1313 Trust for beneficiary with disability. (1) In this section:
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2826	2826	KMS&JPC:cdc
2827	2827	SECTION 117 ASSEMBLY BILL 803
2828	2828	(a) “Beneficiary with a disability” means a beneficiary of a first trust who the
2829	2829	special-needs fiduciary believes in good faith is an individual with a disability.
2830	2830	(b) “Special-needs fiduciary” means, with respect to a trust that has a
2831	2831	beneficiary with a disability, any of the following:
2832	2832	1. A trustee or other fiduciary, other than a settlor, that has discretion to
2833	2833	distribute part or all of the principal of a first trust to one or more current
2834	2834	beneficiaries.
2835	2835	2. If no trustee or fiduciary has discretion under subd. 1., a trustee or other
2836	2836	fiduciary, other than a settlor, that has discretion to distribute part or all of the
2837	2837	income of the first trust to one or more current beneficiaries.
2838	2838	3. If no trustee or fiduciary has discretion under subds. 1. and 2., a trustee or
2839	2839	other fiduciary, other than a settlor, that is required to distribute part or all of the
2840	2840	income or principal of the first trust to one or more current beneficiaries.
2841	2841	(c) “Special-needs trust” means a trust the trustee believes would not be
2842	2842	considered a resource for purposes of determining whether an individual with a
2843	2843	disability is eligible for the supplemental security income program or the medical
2844	2844	assistance program.
2845	2845	(2) A special-needs fiduciary may exercise the decanting power under s.
2846	2846	701.1311 over the principal of a first trust as if the fiduciary had authority to
2847	2847	distribute principal to a beneficiary with a disability subject to expanded distributive
2848	2848	discretion if all of the following apply:
2849	2849	(a) A 2nd trust is a special-needs trust that benefits the beneficiary with a
2850	2850	disability.
2851	2851	(b) The special-needs fiduciary determines that exercise of the decanting
2852	2852	power will further the purposes of the first trust.
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2880	2880	SECTION 117
2881	2881	ASSEMBLY BILL 803
2882	2882	(3) In an exercise of the decanting power under this section, the following rules
2883	2883	apply:
2884	2884	(a) Notwithstanding s. 701.1311 (3) (b), the interest in the 2nd trust of a
2885	2885	beneficiary with a disability may do any of the following:
2886	2886	1. Be an account in a pooled trust for the benefit of the beneficiary with a
2887	2887	disability described in 42 USC 1396p (d) (4) (C) that includes the trust retention
2888	2888	provisions permitted by 42 USC 1396p (d) (4) (C) (iv).
2889	2889	2. Contain payback provisions complying with reimbursement requirements
2890	2890	of Medicaid law under 42 USC 1396p (d) (4) (A) or (C).
2891	2891	(b) Section 701.1311 (3) (c) does not apply to the interests of the beneficiary with
2892	2892	a disability.
2893	2893	(c) Except as affected by any change to the interests of the beneficiary with a
2894	2894	disability or by the effects on remainder beneficiaries of a transfer to a 2nd trust
2895	2895	under par. (a), if the special needs fiduciary has limited distributive discretion over
2896	2896	the principal of the 2nd trust, or if there are 2 or more 2nd trusts, the 2nd trusts in
2897	2897	the aggregate must grant each other beneficiary of the first trust beneficial interests
2898	2898	in the 2nd trusts that are substantially similar to the beneficiary's beneficial
2899	2899	interests in the first trust.
2900	2900	701.1314 Protection of charitable interest. (1) In this section:
2901	2901	(a) “Determinable charitable interest” means an interest that is all of the
2902	2902	following:
2903	2903	1. A charitable interest.
2904	2904	2. Entitled to receive a mandatory distribution currently, periodically, on the
2905	2905	occurrence of a specified event, or after the passage of a specified time.
2906	2906	3. Unconditional or held solely for charitable purposes.
2907	2907	1
2908	2908	2
2909	2909	3
2910	2910	4
2911	2911	5
2912	2912	6
2913	2913	7
2914	2914	8
2915	2915	9
2916	2916	10
2917	2917	11
2918	2918	12
2919	2919	13
2920	2920	14
2921	2921	15
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2926	2926	20
2927	2927	21
2928	2928	22
2929	2929	23
2930	2930	24
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2932	2932	KMS&JPC:cdc
2933	2933	SECTION 117 ASSEMBLY BILL 803
2934	2934	(b) “Unconditional” means not subject to the occurrence of a specified event that
2935	2935	is not certain to occur, other than a requirement in a trust instrument that a
2936	2936	charitable organization be in existence or qualify under a particular provision of the
2937	2937	Internal Revenue Code, on the date of the distribution, if the charitable organization
2938	2938	meets the requirement on the date of determination.
2939	2939	(2) The attorney general may represent and bind a charitable interest only
2940	2940	when the attorney general has the rights of a qualified beneficiary as provided in s.
2941	2941	701.0110 (3).
2942	2942	(3) If a first trust contains a charitable interest, the 2nd trust or trusts may not
2943	2943	do any of the following:
2944	2944	(a) Diminish the charitable interest.
2945	2945	(b) Diminish the interest of an identified charitable organization that holds the
2946	2946	charitable interest.
2947	2947	(c) Alter any charitable purpose stated in the first-trust instrument.
2948	2948	(d) Alter any condition or restriction related to the charitable interest.
2949	2949	(3m) Notwithstanding subs. (3) and (5), if the first trust is an account in a
2950	2950	pooled trust described in 42 USC 1396p (d) (4) (C), the 2nd trust may be an account
2951	2951	in another pooled trust described in 42 USC 1396p (d) (4) (C) or a trust described in
2952	2952	42 USC 1396p (d) (4) (A) regardless of any of the following:
2953	2953	(a) Any effect on a charitable interest in property that is permitted to be
2954	2954	retained in the first trust under 42 USC 1396p (d) (4) (C) (iv).
2955	2955	(b) Any effect the trust retention and Medicaid reimbursement provisions of
2956	2956	the 2nd trust may have on a charitable interest in the first trust.
2957	2957	(c) Any change in the identified charitable organization.
2958	2958	1
2959	2959	2
2960	2960	3
2961	2961	4
2962	2962	5
2963	2963	6
2964	2964	7
2965	2965	8
2966	2966	9
2967	2967	10
2968	2968	11
2969	2969	12
2970	2970	13
2971	2971	14
2972	2972	15
2973	2973	16
2974	2974	17
2975	2975	18
2976	2976	19
2977	2977	20
2978	2978	21
2979	2979	22
2980	2980	23
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2983	2983	KMS&JPC:cdc
2984	2984	SECTION 117
2985	2985	ASSEMBLY BILL 803
2986	2986	(d) Any change in the governing law or principal place of administration of the
2987	2987	trust.
2988	2988	(4) If there are 2 or more 2nd trusts, the 2nd trusts shall be treated as one trust
2989	2989	for purposes of determining whether the exercise of the decanting power diminishes
2990	2990	the charitable interest or diminishes the interest of an identified charitable
2991	2991	organization for purposes of sub. (3).
2992	2992	(5) If a first trust contains a determinable charitable interest, the 2nd trust or
2993	2993	trusts that include a charitable interest pursuant to sub. (3) must be administered
2994	2994	under the law of this state unless any of the following applies:
2995	2995	(a) The attorney general, after receiving notice under s. 701.1307, fails to object
2996	2996	in a signed record delivered to the authorized fiduciary within the notice period.
2997	2997	(b) The attorney general consents in a signed record to the 2nd trust or trusts
2998	2998	being administered under the law of another jurisdiction.
2999	2999	(c) The court approves the exercise of the decanting power.
3000	3000	(d) The identified charitable organization consents in a signed record delivered
3001	3001	to the authorized fiduciary.
3002	3002	(6) This subchapter does not limit the powers and duties of the attorney general
3003	3003	under the laws of this state other than this subchapter.
3004	3004	701.1315 Trust limitation on decanting. (1) An authorized fiduciary may
3005	3005	not exercise the decanting power to the extent the first-trust instrument expressly
3006	3006	prohibits exercise of any of the following:
3007	3007	(a) The decanting power.
3008	3008	(b) A power granted by state law to the fiduciary to distribute part or all of the
3009	3009	principal of the trust to another trust or to modify the trust.
3010	3010	1
3011	3011	2
3012	3012	3
3013	3013	4
3014	3014	5
3015	3015	6
3016	3016	7
3017	3017	8
3018	3018	9
3019	3019	10
3020	3020	11
3021	3021	12
3022	3022	13
3023	3023	14
3024	3024	15
3025	3025	16
3026	3026	17
3027	3027	18
3028	3028	19
3029	3029	20
3030	3030	21
3031	3031	22
3032	3032	23
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3034	3034	KMS&JPC:cdc
3035	3035	SECTION 117 ASSEMBLY BILL 803
3036	3036	(2) Exercise of the decanting power is subject to any restriction in the
3037	3037	first-trust instrument that expressly applies to exercise of any of the following:
3038	3038	(a) The decanting power.
3039	3039	(b) A power granted by state law to a fiduciary to distribute part or all of the
3040	3040	principal of the trust to another trust or to modify the trust.
3041	3041	(3) A general prohibition of the amendment or revocation of a first trust, a
3042	3042	spendthrift clause, or a clause restraining the voluntary or involuntary transfer of
3043	3043	a beneficiary's interest does not preclude exercise of the decanting power.
3044	3044	(4) Subject to subs. (1) and (2), an authorized fiduciary may exercise the
3045	3045	decanting power under this subchapter even if the first-trust instrument permits
3046	3046	the authorized fiduciary or another person to modify the first-trust instrument or
3047	3047	to distribute part or all of the principal of the first trust to another trust.
3048	3048	(5) If a first-trust instrument contains an express restriction described in sub.
3049	3049	(2), the provision must be included in the 2nd-trust instrument.
3050	3050	701.1316 Change in compensation. (1) If a first-trust instrument specifies
3051	3051	an authorized fiduciary's compensation, the fiduciary may not exercise the decanting
3052	3052	power to increase the fiduciary's compensation above the specified compensation
3053	3053	unless any of the following applies:
3054	3054	(a) All qualified beneficiaries of the 2nd trust consent to the increase in a signed
3055	3055	record.
3056	3056	(b) The increase is approved by the court.
3057	3057	(2) If a first-trust instrument does not specify an authorized fiduciary's
3058	3058	compensation, the fiduciary may not exercise the decanting power to increase the
3059	3059	fiduciary's compensation above the compensation permitted by this chapter unless
3060	3060	any of the following applies:
3061	3061	1
3062	3062	2
3063	3063	3
3064	3064	4
3065	3065	5
3066	3066	6
3067	3067	7
3068	3068	8
3069	3069	9
3070	3070	10
3071	3071	11
3072	3072	12
3073	3073	13
3074	3074	14
3075	3075	15
3076	3076	16
3077	3077	17
3078	3078	18
3079	3079	19
3080	3080	20
3081	3081	21
3082	3082	22
3083	3083	23
3084	3084	24
3085	3085	25 - 61 -2023 - 2024 Legislature
3086	3086	LRB-4872/1
3087	3087	KMS&JPC:cdc
3088	3088	SECTION 117
3089	3089	ASSEMBLY BILL 803
3090	3090	(a) All qualified beneficiaries of the 2nd trust consent to the increase in a signed
3091	3091	record.
3092	3092	(b) The increase is approved by the court.
3093	3093	(3) A change in an authorized fiduciary's compensation that is incidental to
3094	3094	other changes made by the exercise of the decanting power is not an increase in the
3095	3095	fiduciary's compensation for purposes of subs. (1) and (2).
3096	3096	(4) This section does not apply to a decanting from a first trust that is a pooled
3097	3097	trust described in 42 USC 1396p (d) (4) (C), or to a decanting to a 2nd trust that is
3098	3098	a pooled trust described in 42 USC 1396p (d) (4) (C).
3099	3099	701.1317 Relief from liability and indemnification. (1) Except as
3100	3100	otherwise provided in this section, a 2nd-trust instrument may not relieve an
3101	3101	authorized fiduciary from liability for breach of trust to a greater extent than the
3102	3102	first-trust instrument unless any of the following applies:
3103	3103	(a) All the qualified beneficiaries of the 2nd trust consent to the relief from
3104	3104	liability in a signed record.
3105	3105	(b) The relief from liability is approved by the court.
3106	3106	(2) A 2nd-trust instrument may provide for indemnification of an authorized
3107	3107	fiduciary of the first trust or another person acting in a fiduciary capacity under the
3108	3108	first trust for any liability or claim that would have been payable from the first trust
3109	3109	if the decanting power had not been exercised.
3110	3110	(3) Absent consent of all qualified beneficiaries or the approval of the court, the
3111	3111	2nd-trust instrument may not reduce the aggregate fiduciary liability of all
3112	3112	fiduciaries of the 2nd trust.
3113	3113	(4) Subject to sub. (3), a 2nd-trust instrument may divide and reallocate
3114	3114	fiduciary powers among fiduciaries, including one or more trustees, directing
3115	3115	1
3116	3116	2
3117	3117	3
3118	3118	4
3119	3119	5
3120	3120	6
3121	3121	7
3122	3122	8
3123	3123	9
3124	3124	10
3125	3125	11
3126	3126	12
3127	3127	13
3128	3128	14
3129	3129	15
3130	3130	16
3131	3131	17
3132	3132	18
3133	3133	19
3134	3134	20
3135	3135	21
3136	3136	22
3137	3137	23
3138	3138	24
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3140	3140	KMS&JPC:cdc
3141	3141	SECTION 117 ASSEMBLY BILL 803
3142	3142	parties, trust protectors, or other persons, and relieve a fiduciary from liability for
3143	3143	an act or failure to act of another fiduciary as permitted by law of this state other than
3144	3144	this subchapter.
3145	3145	701.1318 Removal or replacement of authorized fiduciary. (1) An
3146	3146	authorized fiduciary may not exercise the decanting power to modify a provision in
3147	3147	a first-trust instrument granting another person power to remove or replace the
3148	3148	fiduciary unless any of the following applies:
3149	3149	(a) The person holding the power consents to the modification in a signed record
3150	3150	and the modification applies only to the person.
3151	3151	(b) The person holding the power and the qualified beneficiaries of the 2nd trust
3152	3152	consent to the modification in a signed record and the modification grants a
3153	3153	substantially similar power to another person.
3154	3154	(c) The court approves the modification and the modification grants a
3155	3155	substantially similar power to another person.
3156	3156	(2) This section does not apply to a decanting from a first trust that is a pooled
3157	3157	trust described in 42 USC 1396p (d) (4) (C), or to a decanting to a 2nd trust that is
3158	3158	a pooled trust described in 42 USC 1396p (d) (4) (C).
3159	3159	701.1319 Tax-related limitations. (1) In this section:
3160	3160	(a) “Grantor trust” means a trust as to which a settlor of a first trust is
3161	3161	considered the owner under sections 671 to 677 of the Internal Revenue Code or
3162	3162	section 679 of the Internal Revenue Code.
3163	3163	(b) “Nongrantor trust” means a trust that is not a grantor trust.
3164	3164	(c) “Qualified benefits property” means property subject to the minimum
3165	3165	distribution requirements of section 401 (a) (9) of the Internal Revenue Code, and
3166	3166	1
3167	3167	2
3168	3168	3
3169	3169	4
3170	3170	5
3171	3171	6
3172	3172	7
3173	3173	8
3174	3174	9
3175	3175	10
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3177	3177	12
3178	3178	13
3179	3179	14
3180	3180	15
3181	3181	16
3182	3182	17
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3184	3184	19
3185	3185	20
3186	3186	21
3187	3187	22
3188	3188	23
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3190	3190	LRB-4872/1
3191	3191	KMS&JPC:cdc
3192	3192	SECTION 117
3193	3193	ASSEMBLY BILL 803
3194	3194	any applicable regulations, or to any similar requirements that refer to section 401
3195	3195	(a) (9) of the Internal Revenue Code or the regulations.
3196	3196	(2) An exercise of the decanting power is subject to the following limitations:
3197	3197	(a) If a first trust contains property that qualified, or would have qualified but
3198	3198	for provisions of this subchapter other than this section, for a marital deduction for
3199	3199	purposes of the gift or estate tax under the Internal Revenue Code or a state gift,
3200	3200	estate, or inheritance tax, the 2nd-trust instrument must not include or omit any
3201	3201	term that, if included in or omitted from the trust instrument for the trust to which
3202	3202	the property was transferred, would have prevented the transfer from qualifying for
3203	3203	the deduction, or would have reduced the amount of the deduction, under the same
3204	3204	provisions of the Internal Revenue Code or state law under which the transfer
3205	3205	qualified.
3206	3206	(b) If the first trust contains property that qualified, or would have qualified
3207	3207	but for provisions of this subchapter other than this section, for a charitable
3208	3208	deduction for purposes of the income, gift, or estate tax under the Internal Revenue
3209	3209	Code or a state income, gift, estate, or inheritance tax, the 2nd-trust instrument
3210	3210	must not include or omit any term that, if included in or omitted from the trust
3211	3211	instrument for the trust to which the property was transferred, would have
3212	3212	prevented the transfer from qualifying for the deduction, or would have reduced the
3213	3213	amount of the deduction, under the same provisions of the Internal Revenue Code
3214	3214	or state law under which the transfer qualified.
3215	3215	(c) If the first trust contains property that qualified, or would have qualified
3216	3216	but for provisions of this subchapter other than this section, for the exclusion from
3217	3217	the gift tax described in section 2503 (b) of the Internal Revenue Code, the 2nd-trust
3218	3218	instrument must not include or omit a term that, if included in or omitted from the
3219	3219	1
3220	3220	2
3221	3221	3
3222	3222	4
3223	3223	5
3224	3224	6
3225	3225	7
3226	3226	8
3227	3227	9
3228	3228	10
3229	3229	11
3230	3230	12
3231	3231	13
3232	3232	14
3233	3233	15
3234	3234	16
3235	3235	17
3236	3236	18
3237	3237	19
3238	3238	20
3239	3239	21
3240	3240	22
3241	3241	23
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3244	3244	KMS&JPC:cdc
3245	3245	SECTION 117 ASSEMBLY BILL 803
3246	3246	trust instrument for the trust to which the property was transferred, would have
3247	3247	prevented the transfer from qualifying under section 2503 (b) of the Internal
3248	3248	Revenue Code. If the first trust contains property that qualified, or would have
3249	3249	qualified but for provisions of this subchapter other than this section, for the
3250	3250	exclusion from the gift tax described in the Internal Revenue Code section 2503 (b)
3251	3251	by application of section 2503 (c) of the Internal Revenue Code, the 2nd-trust
3252	3252	instrument must not include or omit a term that, if included or omitted from the trust
3253	3253	instrument for the trust to which the property was transferred, would have
3254	3254	prevented the transfer from qualifying under section 2503 (c) of the Internal
3255	3255	Revenue Code.
3256	3256	(d) If the property of the first trust includes shares of stock in an S corporation,
3257	3257	as defined in section 1361 of the Internal Revenue Code, and the first trust is, or but
3258	3258	for provisions of this subchapter other than this section would be, a permitted
3259	3259	shareholder under any provision of section 1361 of the Internal Revenue Code, an
3260	3260	authorized fiduciary may exercise the power with respect to part or all of the
3261	3261	S-corporation stock only if any 2nd trust receiving the stock is a permitted
3262	3262	shareholder under section 1361 (c) (2) of the Internal Revenue Code. If the property
3263	3263	of the first trust includes shares of stock in an S corporation and the first trust is, or
3264	3264	but for provisions of this subchapter other than this section would be, a qualified
3265	3265	subchapter S trust within the meaning of section 1361 (d) of the Internal Revenue
3266	3266	Code, the 2nd-trust instrument must not include or omit a term that prevents the
3267	3267	2nd trust from qualifying as a qualified subchapter S trust.
3268	3268	(e) If the first trust contains property that qualified, or would have qualified but
3269	3269	for provisions of this subchapter other than this section, for a zero inclusion ratio for
3270	3270	purposes of the generation-skipping transfer tax under section 2642 (c) of the
3271	3271	1
3272	3272	2
3273	3273	3
3274	3274	4
3275	3275	5
3276	3276	6
3277	3277	7
3278	3278	8
3279	3279	9
3280	3280	10
3281	3281	11
3282	3282	12
3283	3283	13
3284	3284	14
3285	3285	15
3286	3286	16
3287	3287	17
3288	3288	18
3289	3289	19
3290	3290	20
3291	3291	21
3292	3292	22
3293	3293	23
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3296	3296	LRB-4872/1
3297	3297	KMS&JPC:cdc
3298	3298	SECTION 117
3299	3299	ASSEMBLY BILL 803
3300	3300	Internal Revenue Code, the 2nd-trust instrument must not include or omit a term
3301	3301	that, if included in or omitted from the first-trust instrument, would have prevented
3302	3302	the transfer to the first trust from qualifying for a zero inclusion ratio under section
3303	3303	2642 (c) of the Internal Revenue Code.
3304	3304	(f) If the first trust is directly or indirectly the beneficiary of qualified benefits
3305	3305	property, the 2nd-trust instrument may not include or omit any term that, if
3306	3306	included in or omitted from the first-trust instrument, would have increased the
3307	3307	minimum distributions required with respect to the qualified benefits property
3308	3308	under section 401 (a) (9) of the Internal Revenue Code and any applicable
3309	3309	regulations, or any similar requirements that refer to section 401 (a) (9) of the
3310	3310	Internal Revenue Code or the regulations. If an attempted exercise of the decanting
3311	3311	power violates this paragraph, the trustee is deemed to have held the qualified
3312	3312	benefits property and any reinvested distributions of the property as a separate
3313	3313	share from the date of the exercise of the power and s. 701.1322 applies to the
3314	3314	separate share.
3315	3315	(g) If the first trust qualifies as a grantor trust because of the application of
3316	3316	section 672 (f) (2) (A) of the Internal Revenue Code, the 2nd trust may not include
3317	3317	or omit a term that, if included in or omitted from the first-trust instrument, would
3318	3318	have prevented the first trust from qualifying under section 672 (f) (2) (A) of the
3319	3319	Internal Revenue Code.
3320	3320	(h) In this paragraph, “tax benefit” means a federal or state tax deduction,
3321	3321	exemption, exclusion, or other benefit not otherwise listed in this section, except for
3322	3322	a benefit arising from being a grantor trust. Subject to par. (i), a 2nd-trust
3323	3323	instrument may not include or omit a term that, if included in or omitted from the
3324	3324	1
3325	3325	2
3326	3326	3
3327	3327	4
3328	3328	5
3329	3329	6
3330	3330	7
3331	3331	8
3332	3332	9
3333	3333	10
3334	3334	11
3335	3335	12
3336	3336	13
3337	3337	14
3338	3338	15
3339	3339	16
3340	3340	17
3341	3341	18
3342	3342	19
3343	3343	20
3344	3344	21
3345	3345	22
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3348	3348	KMS&JPC:cdc
3349	3349	SECTION 117 ASSEMBLY BILL 803
3350	3350	first-trust instrument, would have prevented qualification for a tax benefit if all of
3351	3351	the following apply:
3352	3352	1. The first-trust instrument expressly indicates an intent to qualify for the
3353	3353	benefit or the first-trust instrument clearly is designed to enable the first trust to
3354	3354	qualify for the benefit.
3355	3355	2. The transfer of property held by the first trust or the first trust qualified, or
3356	3356	but for provisions of this subchapter other than this section, would have qualified for
3357	3357	the tax benefit.
3358	3358	(i) Subject to par. (d), all of the following apply:
3359	3359	1. Except as otherwise provided in par. (g), the 2nd trust may be a nongrantor
3360	3360	trust, even if the first trust is a grantor trust.
3361	3361	2. Except as otherwise provided in par. (j), the 2nd trust may be a grantor trust,
3362	3362	even if the first trust is a nongrantor trust.
3363	3363	(j) An authorized fiduciary may not exercise the decanting power if a settlor
3364	3364	objects in a signed record delivered to the fiduciary within the notice period and any
3365	3365	of the following applies:
3366	3366	1. The first trust and a 2nd trust are both grantor trusts, in whole or in part,
3367	3367	the first trust grants the settlor or another person the power to cause the first trust
3368	3368	to cease to be a grantor trust, and the 2nd trust does not grant an equivalent power
3369	3369	to the settlor or other person.
3370	3370	2. The first trust is a nongrantor trust and a 2nd trust is a grantor trust, in
3371	3371	whole or in part, with respect to the settlor, unless any of the following applies:
3372	3372	a. The settlor has the power at all times to cause the 2nd trust to cease to be
3373	3373	a grantor trust.
3374	3374	1
3375	3375	2
3376	3376	3
3377	3377	4
3378	3378	5
3379	3379	6
3380	3380	7
3381	3381	8
3382	3382	9
3383	3383	10
3384	3384	11
3385	3385	12
3386	3386	13
3387	3387	14
3388	3388	15
3389	3389	16
3390	3390	17
3391	3391	18
3392	3392	19
3393	3393	20
3394	3394	21
3395	3395	22
3396	3396	23
3397	3397	24 - 67 -2023 - 2024 Legislature
3398	3398	LRB-4872/1
3399	3399	KMS&JPC:cdc
3400	3400	SECTION 117
3401	3401	ASSEMBLY BILL 803
3402	3402	b. The first-trust instrument contains a provision granting the settlor or
3403	3403	another person a power that would cause the first trust to cease to be a grantor trust
3404	3404	and the 2nd-trust instrument contains the same provision.
3405	3405	701.1320 Duration of 2nd trust. (1) Subject to sub. (2), a 2nd trust may have
3406	3406	a duration that is the same as or different from the duration of the first trust.
3407	3407	(2) To the extent that property of a 2nd trust is attributable to property of the
3408	3408	first trust, the property of the 2nd trust is subject to any rules governing maximum
3409	3409	perpetuity, accumulation, or suspension of the power of alienation that apply to
3410	3410	property of the first trust.
3411	3411	701.1321 Need to distribute not required. An authorized fiduciary may
3412	3412	exercise the decanting power whether or not under the first trust's discretionary
3413	3413	distribution standard the fiduciary would have made or could have been compelled
3414	3414	to make a discretionary distribution of principal at the time of the exercise.
3415	3415	701.1322 Saving provision. (1) If exercise of the decanting power would be
3416	3416	effective under this subchapter except that the 2nd-trust instrument in part does not
3417	3417	comply with this subchapter, the exercise of the power is effective and the following
3418	3418	rules apply with respect to the principal of the 2nd trust attributable to the exercise
3419	3419	of the power:
3420	3420	(a) A provision in the 2nd-trust instrument that is not permitted under this
3421	3421	subchapter is void to the extent necessary to comply with this subchapter.
3422	3422	(b) A provision required by this subchapter to be in the 2nd-trust instrument
3423	3423	that is not contained in the instrument is deemed to be included in the instrument
3424	3424	to the extent necessary to comply with this subchapter.
3425	3425	1
3426	3426	2
3427	3427	3
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3449	3449	SECTION 117 ASSEMBLY BILL 803
3450	3450	(2) If a trustee or other fiduciary of a 2nd trust determines that sub. (1) applies
3451	3451	to a prior exercise of the decanting power, the fiduciary shall take corrective action
3452	3452	consistent with the fiduciary's duties.
3453	3453	701.1323 Trust for care of animal. (1) The decanting power may be
3454	3454	exercised over an animal trust that has an animal protector to the extent the trust
3455	3455	could be decanted under this subchapter if each animal that benefits from the trust
3456	3456	were an individual, if the animal protector consents in a signed record to the exercise
3457	3457	of the power.
3458	3458	(2) An animal protector has the rights under this subchapter of a qualified
3459	3459	beneficiary.
3460	3460	(3) Notwithstanding any other provision of this subchapter, if a first trust is
3461	3461	an animal trust, in an exercise of the decanting power, the 2nd trust must provide
3462	3462	that trust property may be applied only to its intended purpose for the period the first
3463	3463	trust benefitted the animal.
3464	3464	701.1324 Terms of 2nd trust. A reference in this chapter to a trust
3465	3465	instrument or terms of the trust includes a 2nd-trust instrument and the terms of
3466	3466	the 2nd trust.
3467	3467	701.1325 Settlor. (1) For purposes of law of this state other than this
3468	3468	subchapter and subject to sub. (2), a settlor of a first trust is deemed to be the settlor
3469	3469	of the 2nd trust with respect to the portion of the principal of the first trust subject
3470	3470	to the exercise of the decanting power.
3471	3471	(2) In determining settlor intent with respect to a 2nd trust, the intent of a
3472	3472	settlor of the first trust, a settlor of the 2nd trust, and the authorized fiduciary may
3473	3473	be considered.
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3475	3475	2
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3500	3500	SECTION 117
3501	3501	ASSEMBLY BILL 803
3502	3502	701.1326 Later-discovered property. (1) Except as otherwise provided in
3503	3503	sub. (3), if exercise of the decanting power was intended to distribute all the principal
3504	3504	of the first trust to one or more 2nd trusts, later-discovered property belonging to the
3505	3505	first trust and property paid to or acquired by the first trust after the exercise of the
3506	3506	power is part of the trust estate of the 2nd trust or trusts.
3507	3507	(2) Except as otherwise provided in sub. (3), if exercise of the decanting power
3508	3508	was intended to distribute less than all the principal of the first trust to one or more
3509	3509	2nd trusts, later-discovered property belonging to the first trust or property paid to
3510	3510	or acquired by the first trust after exercise of the power remains part of the trust
3511	3511	estate of the first trust.
3512	3512	(3) An authorized fiduciary may provide in an exercise of the decanting power
3513	3513	or by the terms of a 2nd trust for disposition of later-discovered property belonging
3514	3514	to the first trust or property paid to or acquired by the first trust after exercise of the
3515	3515	power.
3516	3516	701.1327 Obligations. A debt, liability, or other obligation enforceable
3517	3517	against property of a first trust is enforceable to the same extent against the property
3518	3518	when held by the 2nd trust after exercise of the decanting power.
3519	3519	SECTION 118. Chapter 702 of the statutes is repealed and recreated to read:
3520	3520	CHAPTER 702
3521	3521	UNIFORM POWERS OF APPOINTMENT ACT
3522	3522	SUBCHAPTER I
3523	3523	GENERAL PROVISIONS
3524	3524	702.101 Short title. This act may be cited as the Uniform Powers of
3525	3525	Appointment Act.
3526	3526	702.102 Definitions. In this chapter:
3527	3527	1
3528	3528	2
3529	3529	3
3530	3530	4
3531	3531	5
3532	3532	6
3533	3533	7
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3553	3553	SECTION 118 ASSEMBLY BILL 803
3554	3554	(1) “Appointee” means a person to which a powerholder makes an appointment
3555	3555	of appointive property.
3556	3556	(2) “Appointive property” means the property or property interest subject to a
3557	3557	power of appointment.
3558	3558	(3) “Blanket-exercise clause” means a clause in an instrument that exercises
3559	3559	a power of appointment and is not a specific-exercise clause. “Blanket-exercise
3560	3560	clause” includes a clause that does any of the following:
3561	3561	(a) Expressly uses the words “any power” in exercising a power of appointment
3562	3562	the powerholder has.
3563	3563	(b) Expressly uses the words “any property” in appointing any property over
3564	3564	which a powerholder has a power of appointment.
3565	3565	(c) Disposes of all property subject to disposition by the powerholder.
3566	3566	(4) “Broad limited power of appointment” means a power of appointment
3567	3567	exercisable in favor of anyone other than the powerholder, the powerholder's estate,
3568	3568	the powerholder's creditors, or the creditors of the powerholder's estate.
3569	3569	(5) “Donor” means a person that creates a power of appointment.
3570	3570	(6) “Exclusionary power of appointment” means a power of appointment
3571	3571	exercisable in favor of one or more permissible appointees to the exclusion of the
3572	3572	other permissible appointees.
3573	3573	(7) “General power of appointment” means a power of appointment exercisable
3574	3574	in favor of the powerholder, the powerholder's estate, a creditor of the powerholder,
3575	3575	or a creditor of the powerholder's estate.
3576	3576	(8) “Gift-in-default clause” means a clause that identifies a taker in default
3577	3577	of appointment.
3578	3578	1
3579	3579	2
3580	3580	3
3581	3581	4
3582	3582	5
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3584	3584	7
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3590	3590	13
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3604	3604	SECTION 118
3605	3605	ASSEMBLY BILL 803
3606	3606	(9) “Impermissible appointee” means a person that is not a permissible
3607	3607	appointee.
3608	3608	(10) “Instrument” means a writing.
3609	3609	(11) “Nongeneral power of appointment” means a power of appointment that
3610	3610	is not a general power of appointment.
3611	3611	(12) “Permissible appointee” means a person in whose favor a powerholder may
3612	3612	exercise a power of appointment.
3613	3613	(13) “Person” means an individual, estate, trust, business or nonprofit entity,
3614	3614	public corporation, government or governmental subdivision, agency , or
3615	3615	instrumentality, or other legal entity.
3616	3616	(14) “Power of appointment” means a power that enables a powerholder acting
3617	3617	in a nonfiduciary capacity to designate a recipient of an ownership interest in or
3618	3618	another power of appointment over the appointive property. “Power of appointment”
3619	3619	does not include a power of attorney.
3620	3620	(15) “Powerholder” means a person in which a donor creates a power of
3621	3621	appointment.
3622	3622	(16) “Presently exercisable power of appointment” means a power of
3623	3623	appointment exercisable by the powerholder at the relevant time. “Presently
3624	3624	exercisable power of appointment” includes a power of appointment that is not
3625	3625	exercisable until the occurrence of a specified event, the satisfaction of an
3626	3626	ascertainable standard, or the passage of a specified time, and only after the
3627	3627	occurrence of the specified event, the satisfaction of the ascertainable standard, or
3628	3628	the passage of the specified time, but does not include a power exercisable only at the
3629	3629	powerholder's death.
3630	3630	1
3631	3631	2
3632	3632	3
3633	3633	4
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3655	3655	SECTION 118 ASSEMBLY BILL 803
3656	3656	(17) “Specific-exercise clause” means a clause in an instrument that
3657	3657	specifically refers to and exercises a particular power of appointment.
3658	3658	(18) “Taker in default of appointment” means a person that takes all or part
3659	3659	of the appointive property to the extent the powerholder does not effectively exercise
3660	3660	the power of appointment.
3661	3661	(19) “Terms of the instrument” means the manifestation of the intent of the
3662	3662	maker of the instrument regarding the instrument's provisions as expressed in the
3663	3663	instrument or as may be established by other evidence that would be admissible in
3664	3664	a legal proceeding.
3665	3665	702.103 Governing law. Unless the terms of the instrument creating a power
3666	3666	of appointment manifest a contrary intent, the creation, revocation, or amendment
3667	3667	of a power of appointment is governed by the law of the donor's domicile at the
3668	3668	relevant time. The exercise, release, or disclaimer of a power of appointment, or the
3669	3669	revocation or amendment of an exercise, release, or disclaimer of a power of
3670	3670	appointment is governed by the law of the powerholder's domicile at the relevant
3671	3671	time.
3672	3672	702.104 Common law and principles of equity . The common law and
3673	3673	principles of equity supplement this chapter, except to the extent modified by this
3674	3674	chapter or any other state law.
3675	3675	702.105 Default rules. The terms of a governing instrument prevail over any
3676	3676	provision of this subchapter.
3677	3677	SUBCHAPTER II
3678	3678	CREATION, REVOCATION, AND AMENDMENT
3679	3679	OF POWER OF APPOINTMENT
3680	3680	1
3681	3681	2
3682	3682	3
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3706	3706	SECTION 118
3707	3707	ASSEMBLY BILL 803
3708	3708	702.201 Creation of power of appointment. (1) A power of appointment
3709	3709	is created only if the instrument creating the power satisfies all of the following:
3710	3710	(a) The instrument is valid under applicable law.
3711	3711	(b) Except as provided in sub. (2), the instrument governs the disposition of the
3712	3712	appointive property.
3713	3713	(c) The terms of the instrument manifest the donor's intent to create in a
3714	3714	powerholder a power of appointment over the appointive property exercisable in
3715	3715	favor of a permissible appointee.
3716	3716	(2) Subsection (1) (b) does not apply to a power of appointment that is created
3717	3717	by the exercise of a power of appointment.
3718	3718	(3) A power of appointment may not be created in a deceased individual.
3719	3719	(4) A power of appointment may be created in an unborn or unascertained
3720	3720	powerholder.
3721	3721	702.202 Nontransferability. A powerholder may not transfer a power of
3722	3722	appointment. If a powerholder dies without exercising or releasing a power of
3723	3723	appointment, the power lapses.
3724	3724	702.203 Presumption of unlimited authority. Subject to ss. 702.204 and
3725	3725	702.205, and unless the terms of the instrument creating a power of appointment
3726	3726	manifest a contrary intent, a power of appointment is all of the following:
3727	3727	(1) A presently exercisable power of appointment.
3728	3728	(2) An exclusionary power of appointment.
3729	3729	(3) A general power of appointment.
3730	3730	702.204 Exception to presumption of unlimited authority. Unless the
3731	3731	terms of the instrument creating a power of appointment manifest a contrary intent,
3732	3732	the power is a nongeneral power of appointment if all of the following apply:
3733	3733	1
3734	3734	2
3735	3735	3
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3758	3758	KMS&JPC:cdc
3759	3759	SECTION 118 ASSEMBLY BILL 803
3760	3760	(1) The power is exercisable only at the powerholder's death.
3761	3761	(2) The permissible appointees of the power are a defined and limited class that
3762	3762	does not include the powerholder's estate, the powerholder's creditors, or the
3763	3763	creditors of the powerholder's estate.
3764	3764	702.205 Rules of classification. (1) In this section, “adverse party” means
3765	3765	a person with a substantial beneficial interest in appointive property that would be
3766	3766	affected adversely by a powerholder's exercise or nonexercise of a power of
3767	3767	appointment in favor of the powerholder, the powerholder's estate, a creditor of the
3768	3768	powerholder, or a creditor of the powerholder's estate.
3769	3769	(2) If a powerholder may exercise a power of appointment only with the consent
3770	3770	or joinder of an adverse party, the power is a nongeneral power of appointment.
3771	3771	(3) If the permissible appointees of a power of appointment are not defined and
3772	3772	limited, the power is an exclusionary power of appointment.
3773	3773	702.206 Power to revoke or amend. A donor may revoke or amend a power
3774	3774	of appointment only to the extent that any of the following applies:
3775	3775	(1) The instrument creating the power is revocable by the donor.
3776	3776	(2) The donor reserves a power of revocation or amendment over the power of
3777	3777	appointment in the instrument.
3778	3778	SUBCHAPTER III
3779	3779	EXERCISE OF POWER OF APPOINTMENT
3780	3780	702.301 Requisites for exercise of power of appointment. (1) (a) A power
3781	3781	of appointment is exercised only if all of the following apply:
3782	3782	1. The instrument exercising the power is valid under applicable law.
3783	3783	2. The terms of the instrument exercising the power do all of the following:
3784	3784	a. Manifest the powerholder's intent to exercise the power.
3785	3785	1
3786	3786	2
3787	3787	3
3788	3788	4
3789	3789	5
3790	3790	6
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3812	3812	SECTION 118
3813	3813	ASSEMBLY BILL 803
3814	3814	b. Subject to s. 702.304, satisfy the requirements of exercise, if any, imposed by
3815	3815	the donor.
3816	3816	(b) A power of appointment is exercised under par. (a) only to the extent the
3817	3817	appointment is a permissible exercise of the power.
3818	3818	(2) If the donor requires the consent of the donor or any other person for the
3819	3819	exercise of a power of appointment, the consent must be expressed in the instrument
3820	3820	exercising the power of appointment or in a separate written instrument, signed in
3821	3821	either case by the persons whose consent is required. If any person whose consent
3822	3822	is required dies or becomes legally incapable of consenting, the power of appointment
3823	3823	may be exercised by the powerholder without the consent of that person unless the
3824	3824	terms of the instrument creating the power of appointment manifest a contrary
3825	3825	intent.
3826	3826	(3) (a) Except as provided in par. (b) and unless the terms of the instrument
3827	3827	creating a power of appointment manifest a contrary intent, if a power of
3828	3828	appointment is vested in 2 or more persons, the joint powerholders may only exercise
3829	3829	the power of appointment unanimously.
3830	3830	(b) If a power of appointment is vested in 2 or more persons and one or more
3831	3831	of the joint powerholders die, become incapable of exercising the power of
3832	3832	appointment, or renounce, release, or disclaim the power of appointment, the power
3833	3833	of appointment may be exercised unanimously by the other powerholders.
3834	3834	702.302 Intent to exercise: determining intent from residuary clause.
3835	3835	(1) In this section:
3836	3836	(a) “Residuary clause” does not include a residuary clause containing a
3837	3837	blanket-exercise clause or a specific-exercise clause.
3838	3838	1
3839	3839	2
3840	3840	3
3841	3841	4
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3844	3844	7
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3850	3850	13
3851	3851	14
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3862	3862	KMS&JPC:cdc
3863	3863	SECTION 118 ASSEMBLY BILL 803
3864	3864	(b) “Will” includes a codicil and a testamentary instrument that revises another
3865	3865	will.
3866	3866	(2) A residuary clause in a powerholder's will, or a comparable clause in the
3867	3867	powerholder's revocable trust, manifests the powerholder's intent to exercise a
3868	3868	power of appointment only if all of the following apply:
3869	3869	(a) The terms of the instrument containing the residuary clause do not manifest
3870	3870	a contrary intent.
3871	3871	(b) The power of appointment is a general power of appointment exercisable in
3872	3872	favor of the powerholder's estate.
3873	3873	(c) There is no gift-in-default clause in the instrument creating the power of
3874	3874	appointment or the gift-in-default clause in the instrument creating the power of
3875	3875	appointment is ineffective.
3876	3876	(d) The powerholder did not release the power of appointment.
3877	3877	702.303 Intent to exercise: after-acquired power. Unless the terms of the
3878	3878	instrument exercising a power of appointment manifest a contrary intent, all of the
3879	3879	following apply:
3880	3880	(1) Except as otherwise provided in sub. (2), a blanket-exercise clause extends
3881	3881	to a power of appointment acquired by the powerholder after executing the
3882	3882	instrument containing the clause.
3883	3883	(2) If the powerholder is also the donor of the power of appointment, a
3884	3884	blanket-exercise clause does not extend to the power of appointment unless there is
3885	3885	not a gift-in-default clause or the gift-in-default clause is ineffective.
3886	3886	702.304 Substantial compliance with donor-imposed formal
3887	3887	requirement. A powerholder's substantial compliance with a formal requirement
3888	3888	of appointment imposed by the donor, including a requirement that the instrument
3889	3889	1
3890	3890	2
3891	3891	3
3892	3892	4
3893	3893	5
3894	3894	6
3895	3895	7
3896	3896	8
3897	3897	9
3898	3898	10
3899	3899	11
3900	3900	12
3901	3901	13
3902	3902	14
3903	3903	15
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3905	3905	17
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3916	3916	SECTION 118
3917	3917	ASSEMBLY BILL 803
3918	3918	exercising the power of appointment make reference or specific reference to the
3919	3919	power, is sufficient if all of the following apply:
3920	3920	(1) The powerholder knows of and intends to exercise the power of
3921	3921	appointment.
3922	3922	(2) The powerholder's manner of attempted exercise of the power of
3923	3923	appointment does not impair a material purpose of the donor in imposing the
3924	3924	requirement.
3925	3925	702.305 Permissible appointment. (1) A powerholder of a general power
3926	3926	of appointment that permits appointment to the powerholder or the powerholder's
3927	3927	estate may make any appointment, including an appointment in trust or creating a
3928	3928	new power of appointment, that the powerholder could make in disposing of the
3929	3929	powerholder's own property.
3930	3930	(2) A powerholder of a general power of appointment that permits appointment
3931	3931	only to the creditors of the powerholder or the creditors of the powerholder's estate
3932	3932	may appoint only to those creditors.
3933	3933	(3) Unless the terms of the instrument creating a power of appointment
3934	3934	manifest a contrary intent, the powerholder of a nongeneral power of appointment
3935	3935	may do any of the following:
3936	3936	(a) Make an appointment in any form, including an appointment in trust, in
3937	3937	favor of a permissible appointee.
3938	3938	(b) Create a general or nongeneral power of appointment in a permissible
3939	3939	appointee that may be exercisable in favor of persons other than permissible
3940	3940	appointees of the original nongeneral power of appointment.
3941	3941	1
3942	3942	2
3943	3943	3
3944	3944	4
3945	3945	5
3946	3946	6
3947	3947	7
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3949	3949	9
3950	3950	10
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3952	3952	12
3953	3953	13
3954	3954	14
3955	3955	15
3956	3956	16
3957	3957	17
3958	3958	18
3959	3959	19
3960	3960	20
3961	3961	21
3962	3962	22
3963	3963	23 - 78 -2023 - 2024 Legislature LRB-4872/1
3964	3964	KMS&JPC:cdc
3965	3965	SECTION 118 ASSEMBLY BILL 803
3966	3966	(c) Create a nongeneral power of appointment in any person to appoint to one
3967	3967	or more of the permissible appointees of the original nongeneral power of
3968	3968	appointment.
3969	3969	702.306 Appointment to a deceased appointee. Subject to s. 854.06, an
3970	3970	exercise of a power of appointment is ineffective to the extent it is in favor of a
3971	3971	deceased appointee.
3972	3972	702.307 Impermissible appointment. (1) Except as otherwise provided in
3973	3973	s. 702.306, an exercise of a power of appointment is ineffective to the extent it is in
3974	3974	favor of an impermissible appointee.
3975	3975	(2) An exercise of a power of appointment in favor of a permissible appointee
3976	3976	is ineffective to the extent the appointment is a fraud on the power.
3977	3977	702.308 Selective allocation doctrine. If a powerholder exercises a power
3978	3978	of appointment in a disposition that also disposes of property the powerholder owns,
3979	3979	the owned property and the appointive property must be allocated in the permissible
3980	3980	manner that best carries out the powerholder's intent.
3981	3981	702.309 Capture doctrine: disposition of ineffectively appointed
3982	3982	property under general power. To the extent a powerholder of a general power
3983	3983	of appointment, other than a power to withdraw property from, revoke, or amend a
3984	3984	trust, makes an ineffective appointment, all of the following apply:
3985	3985	(1) The gift-in-default clause controls the disposition of the ineffectively
3986	3986	appointed property.
3987	3987	(2) (a) If there is no gift-in-default clause or to the extent the gift-in-default
3988	3988	clause is ineffective, the ineffectively appointed property passes to one of the
3989	3989	following:
3990	3990	1. If the powerholder is a permissible appointee and living, the powerholder.
3991	3991	1
3992	3992	2
3993	3993	3
3994	3994	4
3995	3995	5
3996	3996	6
3997	3997	7
3998	3998	8
3999	3999	9
4000	4000	10
4001	4001	11
4002	4002	12
4003	4003	13
4004	4004	14
4005	4005	15
4006	4006	16
4007	4007	17
4008	4008	18
4009	4009	19
4010	4010	20
4011	4011	21
4012	4012	22
4013	4013	23
4014	4014	24
4015	4015	25 - 79 -2023 - 2024 Legislature
4016	4016	LRB-4872/1
4017	4017	KMS&JPC:cdc
4018	4018	SECTION 118
4019	4019	ASSEMBLY BILL 803
4020	4020	2. If the powerholder is an impermissible appointee or deceased, the
4021	4021	powerholder's estate if the estate is a permissible appointee.
4022	4022	(b) If there is no taker under par. (a), the ineffectively appointed property
4023	4023	passes under a reversionary interest to the donor or the donor's transferee or
4024	4024	successor in interest.
4025	4025	702.310 Disposition of unappointed property under released or
4026	4026	unexercised general power. To the extent a powerholder releases or fails to
4027	4027	exercise a general power of appointment other than a power to withdraw property
4028	4028	from, revoke, or amend a trust, all of the following apply:
4029	4029	(1) The gift-in-default clause controls the disposition of the unappointed
4030	4030	property.
4031	4031	(2) (a) If there is no gift-in-default clause or to the extent the gift-in-default
4032	4032	clause is ineffective, except as otherwise provided in par. (b), the unappointed
4033	4033	property passes to any of the following:
4034	4034	1. If the powerholder is a permissible appointee and living, the powerholder.
4035	4035	2. If the powerholder is an impermissible appointee or deceased, the
4036	4036	powerholder's estate if the estate is a permissible appointee.
4037	4037	(b) To the extent the powerholder released the power, or if there is no taker
4038	4038	under par. (a), the unappointed property passes under a reversionary interest to the
4039	4039	donor or the donor's transferee or successor in interest.
4040	4040	702.311 Disposition of unappointed property under released or
4041	4041	unexercised nongeneral power of appointment. To the extent a powerholder
4042	4042	releases, ineffectively exercises, or fails to exercise a nongeneral power of
4043	4043	appointment, all of the following apply:
4044	4044	1
4045	4045	2
4046	4046	3
4047	4047	4
4048	4048	5
4049	4049	6
4050	4050	7
4051	4051	8
4052	4052	9
4053	4053	10
4054	4054	11
4055	4055	12
4056	4056	13
4057	4057	14
4058	4058	15
4059	4059	16
4060	4060	17
4061	4061	18
4062	4062	19
4063	4063	20
4064	4064	21
4065	4065	22
4066	4066	23
4067	4067	24 - 80 -2023 - 2024 Legislature LRB-4872/1
4068	4068	KMS&JPC:cdc
4069	4069	SECTION 118 ASSEMBLY BILL 803
4070	4070	(1) The gift-in-default clause controls the disposition of the unappointed
4071	4071	property.
4072	4072	(2) (a) If there is no gift-in-default clause or to the extent the gift-in-default
4073	4073	clause is ineffective, the unappointed property passes to the permissible appointees
4074	4074	if all of the following apply:
4075	4075	1. The permissible appointees are defined and limited.
4076	4076	2. The terms of the instrument creating the power do not manifest a contrary
4077	4077	intent.
4078	4078	(b) If there is no taker under par. (a), the unappointed property passes under
4079	4079	a reversionary interest to the donor or the donor's transferee or successor in interest.
4080	4080	702.312 Disposition of unappointed property if partial appointment to
4081	4081	taker in default. Unless the terms of an instrument creating or exercising a power
4082	4082	of appointment manifest a contrary intent, if the powerholder makes a valid partial
4083	4083	appointment to a taker in default of appointment, the taker in default of
4084	4084	appointment may share fully in unappointed property.
4085	4085	702.313 Appointment to taker in default. If a powerholder makes an
4086	4086	appointment to a taker in default of appointment and the appointee would have
4087	4087	taken the property under a gift-in-default clause had the property not been
4088	4088	appointed, the power of appointment is considered not to have been exercised and the
4089	4089	appointee takes under the gift-in-default clause.
4090	4090	702.314 Powerholder's authority to revoke or amend exercise. A
4091	4091	powerholder may revoke or amend an exercise of a power of appointment only to the
4092	4092	extent that any of the following applies:
4093	4093	(1) The powerholder reserves a power of revocation or amendment in the
4094	4094	instrument exercising the power of appointment and, if the power is a nongeneral
4095	4095	1
4096	4096	2
4097	4097	3
4098	4098	4
4099	4099	5
4100	4100	6
4101	4101	7
4102	4102	8
4103	4103	9
4104	4104	10
4105	4105	11
4106	4106	12
4107	4107	13
4108	4108	14
4109	4109	15
4110	4110	16
4111	4111	17
4112	4112	18
4113	4113	19
4114	4114	20
4115	4115	21
4116	4116	22
4117	4117	23
4118	4118	24
4119	4119	25 - 81 -2023 - 2024 Legislature
4120	4120	LRB-4872/1
4121	4121	KMS&JPC:cdc
4122	4122	SECTION 118
4123	4123	ASSEMBLY BILL 803
4124	4124	power of appointment, the terms of the instrument creating the power of
4125	4125	appointment do not prohibit the reservation.
4126	4126	(2) The terms of the instrument creating the power of appointment provide that
4127	4127	the exercise of the power of appointment is revocable or amendable.
4128	4128	702.315 Presumption of nonexercise of a power of appointment. (1)
4129	4129	A personal representative, trustee, or other fiduciary who holds property subject to
4130	4130	a power of appointment may administer that property as if the power of appointment
4131	4131	was not exercised if the personal representative, trustee, or other fiduciary has no
4132	4132	notice of the existence of any of the following within 6 months after the death of the
4133	4133	powerholder:
4134	4134	(a) A document purporting to be a will of the powerholder if the power of
4135	4135	appointment is exercised by the will.
4136	4136	(b) Other documentation of the powerholder purporting to exercise the power
4137	4137	of appointment if the power of appointment is exercisable other than by a will.
4138	4138	(2) A personal representative, trustee, or other fiduciary who acts in good faith
4139	4139	is not liable to any person for administering property as if a power of appointment
4140	4140	was not exercised as provided in sub. (1).
4141	4141	SUBCHAPTER IV
4142	4142	DISCLAIMER OR RELEASE; CONTRACT
4143	4143	TO APPOINT OR NOT TO APPOINT
4144	4144	702.401 Disclaimer. (1) A powerholder may disclaim all or part of a power
4145	4145	of appointment as provided under ss. 700.27 and 854.13.
4146	4146	(2) A permissible appointee, appointee, or taker in default of appointment may
4147	4147	disclaim all or part of an interest in appointive property, as provided under ss. 700.27
4148	4148	and 854.13.
4149	4149	1
4150	4150	2
4151	4151	3
4152	4152	4
4153	4153	5
4154	4154	6
4155	4155	7
4156	4156	8
4157	4157	9
4158	4158	10
4159	4159	11
4160	4160	12
4161	4161	13
4162	4162	14
4163	4163	15
4164	4164	16
4165	4165	17
4166	4166	18
4167	4167	19
4168	4168	20
4169	4169	21
4170	4170	22
4171	4171	23
4172	4172	24
4173	4173	25 - 82 -2023 - 2024 Legislature LRB-4872/1
4174	4174	KMS&JPC:cdc
4175	4175	SECTION 118 ASSEMBLY BILL 803
4176	4176	702.402 Authority to release. A powerholder may release a power of
4177	4177	appointment, in whole or in part, except to the extent the terms of the instrument
4178	4178	creating the power prevent the release.
4179	4179	702.403 Method of release. A powerholder of a releasable power of
4180	4180	appointment may release the power in whole or in part by any of the following
4181	4181	methods:
4182	4182	(1) Substantial compliance with a method provided in the terms of the
4183	4183	instrument creating the power.
4184	4184	(2) If the terms of the instrument creating the power do not provide a method,
4185	4185	a writing that manifests the powerholder's intent by clear and convincing evidence.
4186	4186	702.404 Revocation of amendment of release. A powerholder may revoke
4187	4187	or amend a release of a power of appointment only to the extent that any of the
4188	4188	following applies:
4189	4189	(1) The instrument of release is revocable by the powerholder.
4190	4190	(2) The powerholder reserves a power of revocation or amendment in the
4191	4191	instrument of release.
4192	4192	702.405 Power to contract: presently exercisable power of
4193	4193	appointment. A powerholder of a presently exercisable power of appointment may
4194	4194	contract to do any of the following:
4195	4195	(1) Not to exercise the power.
4196	4196	(2) To exercise the power if the contract when made does not confer a benefit
4197	4197	on an impermissible appointee.
4198	4198	702.406 Power to contract: power of appointment not presently
4199	4199	exercisable. A powerholder of a power of appointment that is not presently
4200	4200	1
4201	4201	2
4202	4202	3
4203	4203	4
4204	4204	5
4205	4205	6
4206	4206	7
4207	4207	8
4208	4208	9
4209	4209	10
4210	4210	11
4211	4211	12
4212	4212	13
4213	4213	14
4214	4214	15
4215	4215	16
4216	4216	17
4217	4217	18
4218	4218	19
4219	4219	20
4220	4220	21
4221	4221	22
4222	4222	23
4223	4223	24 - 83 -2023 - 2024 Legislature
4224	4224	LRB-4872/1
4225	4225	KMS&JPC:cdc
4226	4226	SECTION 118
4227	4227	ASSEMBLY BILL 803
4228	4228	exercisable may contract to exercise or not to exercise the power only if all of the
4229	4229	following apply:
4230	4230	(1) The powerholder is also the donor of the power.
4231	4231	(2) The powerholder reserved the power in a revocable trust.
4232	4232	702.407 Remedy for breach of contract to appoint or not to appoint.
4233	4233	The remedy for a powerholder's breach of a contract to appoint or not to appoint
4234	4234	appointive property is limited to damages payable out of the appointive property or,
4235	4235	if appropriate, specific performance of the contract.
4236	4236	SUBCHAPTER V
4237	4237	RIGHTS OF POWERHOLDER'S CREDITORS
4238	4238	IN APPOINTIVE PROPERTY
4239	4239	702.501 Creditor claim: general power created by powerholder. (1) In
4240	4240	this section, “power of appointment created by the powerholder” includes a power of
4241	4241	appointment created in a transfer by another person to the extent the powerholder
4242	4242	contributed value to the transfer.
4243	4243	(2) Appointive property subject to a general power of appointment created by
4244	4244	a powerholder is subject to a claim of a creditor of the powerholder or of the
4245	4245	powerholder's estate to the extent provided in ch. 242 and any other applicable law
4246	4246	relating to fraudulent conveyances.
4247	4247	(3) Subject to sub. (2), appointive property subject to a general power of
4248	4248	appointment created by a powerholder is not subject to a claim of a creditor of the
4249	4249	powerholder or the powerholder's estate to the extent the powerholder irrevocably
4250	4250	appointed the property in favor of a person other than the powerholder or the
4251	4251	powerholder's estate.
4252	4252	1
4253	4253	2
4254	4254	3
4255	4255	4
4256	4256	5
4257	4257	6
4258	4258	7
4259	4259	8
4260	4260	9
4261	4261	10
4262	4262	11
4263	4263	12
4264	4264	13
4265	4265	14
4266	4266	15
4267	4267	16
4268	4268	17
4269	4269	18
4270	4270	19
4271	4271	20
4272	4272	21
4273	4273	22
4274	4274	23
4275	4275	24 - 84 -2023 - 2024 Legislature LRB-4872/1
4276	4276	KMS&JPC:cdc
4277	4277	SECTION 118 ASSEMBLY BILL 803
4278	4278	(4) Subject to subs. (2) and (3), and notwithstanding the presence of a
4279	4279	spendthrift provision or whether the claim arose before or after the creation of the
4280	4280	power of appointment, appointive property subject to a general power of
4281	4281	appointment created by a powerholder is subject to a claim of a creditor of any of the
4282	4282	following:
4283	4283	(a) If the power of appointment is a presently exercisable power of
4284	4284	appointment, the powerholder, to the same extent as if the powerholder owned the
4285	4285	appointive property.
4286	4286	(b) If the power of appointment is exercisable at the powerholder's death, the
4287	4287	powerholder's estate, to the extent the estate is insufficient to satisfy the claim and
4288	4288	subject to the right of a decedent to direct the source from which liabilities are paid.
4289	4289	702.502 Creditor claim: general power not created by powerholder. (1)
4290	4290	Except as otherwise provided in sub. (2), appointive property subject to a general
4291	4291	power of appointment created by a person other than the powerholder is subject to
4292	4292	a claim of a creditor of any of the following:
4293	4293	(a) If the power of appointment is a presently exercisable power of
4294	4294	appointment, the powerholder to the extent the powerholder 's property is
4295	4295	insufficient.
4296	4296	(b) If the power of appointment is exercisable at the powerholder's death, the
4297	4297	powerholder's estate or revocable trust, subject to the right of a decedent to direct the
4298	4298	source from which liabilities are paid, but only to the extent of the powerholder's
4299	4299	exercise of that general power of appointment and only to the extent that the claim
4300	4300	of the creditor has been filed and allowed in the powerholder's estate or filed with and
4301	4301	approved by the trustee of a revocable trust but not paid because the assets of the
4302	4302	estate or revocable trust are insufficient. For purposes of this paragraph, a revocable
4303	4303	1
4304	4304	2
4305	4305	3
4306	4306	4
4307	4307	5
4308	4308	6
4309	4309	7
4310	4310	8
4311	4311	9
4312	4312	10
4313	4313	11
4314	4314	12
4315	4315	13
4316	4316	14
4317	4317	15
4318	4318	16
4319	4319	17
4320	4320	18
4321	4321	19
4322	4322	20
4323	4323	21
4324	4324	22
4325	4325	23
4326	4326	24
4327	4327	25 - 85 -2023 - 2024 Legislature
4328	4328	LRB-4872/1
4329	4329	KMS&JPC:cdc
4330	4330	SECTION 118
4331	4331	ASSEMBLY BILL 803
4332	4332	trust is a trust that is revocable, as defined in s. 701.0103 (22), by the powerholder
4333	4333	or jointly by the powerholder and the powerholder's spouse.
4334	4334	(2) Subject to s. 702.504 (3), a power of appointment created by a person other
4335	4335	than the powerholder that is subject to an ascertainable standard relating to an
4336	4336	individual's health, education, support, or maintenance within the meaning of 26
4337	4337	USC 2041 (b) (1) (A) or 2514 (c) (1), is considered for purposes of this subchapter as
4338	4338	a nongeneral power of appointment.
4339	4339	(3) If during the powerholder's lifetime, the powerholder exercises a general
4340	4340	power of appointment created by a person other than the powerholder, a creditor of
4341	4341	the powerholder can reach the appointed interests to the same extent that under the
4342	4342	law relating to fraudulent conveyances the creditor could reach property that the
4343	4343	powerholder has owned and transferred during the powerholder's lifetime.
4344	4344	702.503 Power to withdraw. (1) For purposes of this subchapter, and except
4345	4345	as otherwise provided in sub. (2), a power to withdraw property from a trust is
4346	4346	considered, during the time the power may be exercised, as a presently exercisable
4347	4347	general power of appointment to the extent of the property subject to the power to
4348	4348	withdraw.
4349	4349	(2) On the lapse, release, or waiver of a power to withdraw property from a
4350	4350	trust, the power is treated as a presently exercisable general power of appointment
4351	4351	only to the extent the value of the property affected by the lapse, release, or waiver
4352	4352	exceeds the greater of the following:
4353	4353	(a) The amount referenced in section 2041 (b) (2) or 2514 (e) of the Internal
4354	4354	Revenue Code.
4355	4355	(b) The amount referenced in section 2503 (b) of the Internal Revenue Code for
4356	4356	each individual other than the beneficiary who makes a transfer to the trust or who
4357	4357	1
4358	4358	2
4359	4359	3
4360	4360	4
4361	4361	5
4362	4362	6
4363	4363	7
4364	4364	8
4365	4365	9
4366	4366	10
4367	4367	11
4368	4368	12
4369	4369	13
4370	4370	14
4371	4371	15
4372	4372	16
4373	4373	17
4374	4374	18
4375	4375	19
4376	4376	20
4377	4377	21
4378	4378	22
4379	4379	23
4380	4380	24
4381	4381	25 - 86 -2023 - 2024 Legislature LRB-4872/1
4382	4382	KMS&JPC:cdc
4383	4383	SECTION 118 ASSEMBLY BILL 803
4384	4384	is considered to make a transfer to the trust pursuant to an election to split gifts
4385	4385	under section 2513 (a) of the Internal Revenue Code.
4386	4386	702.504 Creditor claim: nongeneral power of appointment. (1) Except
4387	4387	as otherwise provided in subs. (2) and (3), appointive property subject to a
4388	4388	nongeneral power of appointment is exempt from a claim of a creditor of the
4389	4389	powerholder or the powerholder's estate.
4390	4390	(2) Appointive property subject to a nongeneral power of appointment is
4391	4391	subject to a claim of a creditor of the powerholder or the powerholder's estate to the
4392	4392	extent that the powerholder owned the property and, reserving the nongeneral
4393	4393	power, transferred the property in violation of the law relating to fraudulent
4394	4394	conveyances.
4395	4395	(3) For purposes of this subchapter, if the initial gift in default of appointment
4396	4396	is to the powerholder or the powerholder's estate, a nongeneral power of appointment
4397	4397	is treated as a general power of appointment.
4398	4398	702.505. Third parties in good faith protected. Any person acting without
4399	4399	actual notice of claims of creditors under this subchapter incurs no liability to those
4400	4400	creditors for transferring property that is subject to a power of appointment or that
4401	4401	has been appointed. A purchaser without actual notice and for a valuable
4402	4402	consideration takes an interest in property, legal or equitable, and takes the interest
4403	4403	free of any rights that a powerholder's creditor may have under this subchapter.
4404	4404	SUBCHAPTER VI
4405	4405	MISCELLANEOUS PROVISIONS
4406	4406	702.601 Recording instruments relating to a power of appointment. (1)
4407	4407	Each of the following instruments relating to a power of appointment is entitled to
4408	4408	be recorded as a conveyance upon compliance with s. 706.05 (1):
4409	4409	1
4410	4410	2
4411	4411	3
4412	4412	4
4413	4413	5
4414	4414	6
4415	4415	7
4416	4416	8
4417	4417	9
4418	4418	10
4419	4419	11
4420	4420	12
4421	4421	13
4422	4422	14
4423	4423	15
4424	4424	16
4425	4425	17
4426	4426	18
4427	4427	19
4428	4428	20
4429	4429	21
4430	4430	22
4431	4431	23
4432	4432	24
4433	4433	25 - 87 -2023 - 2024 Legislature
4434	4434	LRB-4872/1
4435	4435	KMS&JPC:cdc
4436	4436	SECTION 118
4437	4437	ASSEMBLY BILL 803
4438	4438	(a) An instrument, other than a will, exercising a power of appointment.
4439	4439	(b) An instrument expressing consent to exercise a power of appointment.
4440	4440	(c) A disclaimer.
4441	4441	(d) A release.
4442	4442	(2) If a power of appointment is exercised by a will, a certified copy of the will
4443	4443	and of the certificate of probate thereof may be recorded.
4444	4444	702.602 Uniformity of application and construction. In applying and
4445	4445	construing this section, consideration shall be given to the need to promote
4446	4446	uniformity of the law with respect to its subject matter among states that enact it.
4447	4447	702.603 Relation to electronic signatures in global and national
4448	4448	commerce act. (1) Except as provided in sub. (2), this chapter modifies, limits, and
4449	4449	supersedes the federal Electronic Signatures in Global and National Commerce Act,
4450	4450	15 USC 7001, et seq.
4451	4451	(2) This chapter does not modify, limit, or supersede 15 USC 7001 (c) or
4452	4452	authorize electronic delivery of any of the notices described in 15 USC 7003 (b).
4453	4453	702.604 Applicability. (1) (a) This chapter applies to a power of appointment
4454	4454	created before, on, or after the effective date of this paragraph .... [LRB inserts date].
4455	4455	(b) This chapter applies to a judicial proceeding concerning a power of
4456	4456	appointment commenced on or after the effective date of this paragraph .... [LRB
4457	4457	inserts date].
4458	4458	(c) This chapter applies to a judicial proceeding concerning a power of
4459	4459	appointment commenced before the effective date of this paragraph .... [LRB inserts
4460	4460	date], unless the court finds that application of a particular provision of this chapter
4461	4461	would interfere substantially with the effective conduct of the judicial proceeding or
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4486	4486	KMS&JPC:cdc
4487	4487	SECTION 118 ASSEMBLY BILL 803
4488	4488	prejudice a right of a party, in which case the particular provision of this chapter does
4489	4489	not apply and the superseded law applies.
4490	4490	(d) A rule of construction or presumption in this chapter applies to an
4491	4491	instrument executed before the effective date of this paragraph .... [LRB inserts
4492	4492	date], unless there is a clear indication of a contrary intent in the terms of the
4493	4493	instrument.
4494	4494	(e) Except as otherwise provided in pars. (a) to (d), this chapter does not apply
4495	4495	to an action taken before the effective date of this paragraph .... [LRB inserts date].
4496	4496	(2) If a right is acquired, extinguished, or barred on the expiration of a
4497	4497	prescribed period that commenced under a law of this state other than this chapter
4498	4498	before the effective date of this subsection .... [LRB inserts date], the law continues
4499	4499	to apply to the right.
4500	4500	SECTION 119. 711.03 (4m) of the statutes is created to read:
4501	4501	711.03 (4m) “Consent instrument” means a written notarized document in
4502	4502	physical or electronic form evidencing the user's consent to the disclosure of the
4503	4503	contents of electronic communications to a then acting fiduciary.
4504	4504	SECTION 120. 711.04 (1) of the statutes is renumbered 711.04 (1) (intro.) and
4505	4505	amended to read:
4506	4506	711.04 (1) (intro.) A user may use an online tool to direct the custodian to
4507	4507	disclose or not disclose to a designated recipient or not to disclose some or all of the
4508	4508	user's digital property, including the content of electronic communications. If the
4509	4509	online tool allows the user to modify or delete a direction at all times, a direction
4510	4510	regarding disclosure using an online tool overrides a contrary direction by the user
4511	4511	in a any of the following:
4512	4512	(a) A will, trust, power of attorney, or any other governing instrument.
4513	4513	1
4514	4514	2
4515	4515	3
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4538	4538	LRB-4872/1
4539	4539	KMS&JPC:cdc
4540	4540	SECTION 121
4541	4541	ASSEMBLY BILL 803
4542	4542	SECTION 121. 711.04 (1) (b) of the statutes is created to read:
4543	4543	711.04 (1) (b) A power of attorney.
4544	4544	SECTION 122. 711.04 (1) (c) of the statutes is created to read:
4545	4545	711.04 (1) (c) A consent instrument.
4546	4546	SECTION 123. 711.04 (1) (d) of the statutes is created to read:
4547	4547	711.04 (1) (d) Any other record.
4548	4548	SECTION 124. 711.04 (2) of the statutes is amended to read:
4549	4549	711.04 (2) If a user has not used an online tool to give direction under sub. (1),
4550	4550	or if the custodian has not provided an online tool, the user may allow or prohibit
4551	4551	disclosure to a fiduciary of some or all of the user's digital property, including the
4552	4552	content of electronic communications sent or received by the user, in a will, trust, any
4553	4553	other governing instrument, power of attorney, or any other governing consent
4554	4554	instrument.
4555	4555	SECTION 125. 711.05 (2) (b) of the statutes is amended to read:
4556	4556	711.05 (2) (b) Unless the user provided direction using an online tool, a copy
4557	4557	of the user's will, certification of trust under s. 701.1013, or other governing
4558	4558	instrument, or consent instrument evidencing the deceased user's consent to
4559	4559	disclosure of the content of electronic communications.
4560	4560	SECTION 126. 711.06 (2) (intro.) of the statutes is amended to read:
4561	4561	711.06 (2) DISCLOSURE OF CONTENT OF ELECTRONIC COMMUNICATIONS; PRINCIPAL.
4562	4562	(intro.) To the extent a power of attorney expressly grants an agent authority over
4563	4563	the content of electronic communications sent or received by the principal, or to the
4564	4564	extent a consent instrument expressly consents to the disclosure to the agent the
4565	4565	content of electronic communications sent or received by the principal, and unless
4566	4566	directed otherwise by the principal or the court, a custodian shall grant an agent
4567	4567	1
4568	4568	2
4569	4569	3
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4590	4590	24
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4592	4592	KMS&JPC:cdc
4593	4593	SECTION 126 ASSEMBLY BILL 803
4594	4594	authority over the content of electronic communications or disclose to the agent the
4595	4595	content of electronic communications if the agent gives the custodian all of the
4596	4596	following:
4597	4597	SECTION 127. 711.06 (2) (b) of the statutes is amended to read:
4598	4598	711.06 (2) (b) An original or a copy of the power of attorney that expressly
4599	4599	grants the agent authority over the content of electronic communications of the
4600	4600	principal or the consent instrument that expressly grants consent to disclosure to the
4601	4601	agent of the content of electronic communications of the principal.
4602	4602	SECTION 128. 711.07 (3) (b) of the statutes is amended to read:
4603	4603	711.07 (3) (b) A consent instrument or certification of the trust under s.
4604	4604	701.1013 that includes an original or successor user's consent to disclosure of the
4605	4605	content of electronic communications to the trustee.
4606	4606	SECTION 129. 711.13 of the statutes is amended to read:
4607	4607	711.13 Marital property classification of digital property. Chapter 766
4608	4608	Section 766.625 governs the classification of digital property of a user who is married
4609	4609	person.
4610	4610	SECTION 130. 766.01 (9) (a) of the statutes is amended to read:
4611	4611	766.01 (9) (a) Except as provided in pars. (b) to (d) (f), property is “held" by a
4612	4612	person only if a document of title to the property is registered, recorded, or filed in
4613	4613	a public office in the name of the person or a writing that customarily operates as a
4614	4614	document of title to the type of property is issued for the property in the person's
4615	4615	name.
4616	4616	SECTION 131. 766.01 (9) (e) of the statutes is created to read:
4617	4617	1
4618	4618	2
4619	4619	3
4620	4620	4
4621	4621	5
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4639	4639	23 - 91 -2023 - 2024 Legislature
4640	4640	LRB-4872/1
4641	4641	KMS&JPC:cdc
4642	4642	SECTION 131
4643	4643	ASSEMBLY BILL 803
4644	4644	766.01 (9) (e) 1. An account, as defined in s. 711.03 (1), and the digital property
4645	4645	in the account, including the content of an electronic communication, as defined in
4646	4646	s. 711.03 (6), are “held” by a person who is the user, as defined in s. 711.03 (28).
4647	4647	2. The catalogue of electronic communications, as defined in s. 711.03 (4), or
4648	4648	similar identifying information for digital property in an account, is “held” by a
4649	4649	person who holds such digital property, including the content of such electronic
4650	4650	communications, under subd. 1.
4651	4651	3. For purposes of subds. 1. and 2., “person” has the meaning given under s.
4652	4652	711.03 (19).
4653	4653	SECTION 132. 766.01 (9) (f) of the statutes is created to read:
4654	4654	766.01 (9) (f) A right or interest in digital property, not titled in the name of
4655	4655	either spouse, that has been identified as having been originally created, purchased,
4656	4656	or otherwise acquired by a spouse is “held” by that spouse.
4657	4657	SECTION 133. 766.31 (7) (b) of the statutes is amended to read:
4658	4658	766.31 (7) (b) In Except as provided in s. 766.625 (2) (b) 1., in exchange for or
4659	4659	with the proceeds of other individual property of the spouse.
4660	4660	SECTION 134. 766.31 (7) (g) of the statutes is created to read:
4661	4661	766.31 (7) (g) By classification under s. 766.625 (2), designating an account and
4662	4662	the digital property in an account, including the content of electronic
4663	4663	communications, as defined in s. 711.03 (6), as the individual property of the holding
4664	4664	spouse.
4665	4665	SECTION 135. 766.58 (7) (c) of the statutes is created to read:
4666	4666	766.58 (7) (c) Unless the marital property agreement expressly provides
4667	4667	otherwise, a marital property agreement that classifies digital property as marital
4668	4668	property does not affect the operation of s. 766.625 (2).
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4694	4694	KMS&JPC:cdc
4695	4695	SECTION 136 ASSEMBLY BILL 803
4696	4696	SECTION 136. 766.58 (13) (b) of the statutes is renumbered 766.58 (13) (b) 1. and
4697	4697	amended to read:
4698	4698	766.58 (13) (b) 1. After the death of a spouse, if an estate administration
4699	4699	proceeding is filed, no action concerning a marital property agreement may be
4700	4700	brought later than 6 months after the inventory is filed under s. 858.01. If an
4701	4701	amended inventory is filed, the action may be brought within 6 months after the
4702	4702	filing of the amended inventory if the action relates to information contained in the
4703	4703	amended inventory that was not contained in a previous inventory.
4704	4704	SECTION 137. 766.58 (13) (b) 2. and 3. of the statutes are created to read:
4705	4705	766.58 (13) (b) 2. After the death of a spouse, if no estate administration
4706	4706	proceeding is filed, no action concerning a marital property agreement may be
4707	4707	brought later than 8 months after the death of the spouse.
4708	4708	3. If an action concerning a marital property agreement is barred under subd.
4709	4709	2. and an estate administration proceeding is thereafter commenced, any judgment
4710	4710	in an action concerning a marital property agreement not barred under subd. 1. may
4711	4711	be recovered only from the estate of the deceased spouse.
4712	4712	SECTION 138. 766.58 (13) (c) of the statutes is amended to read:
4713	4713	766.58 (13) (c) The court may extend the 6-month period under par. (b) 1. for
4714	4714	cause if a motion for extension is made within the applicable 6-month period.
4715	4715	SECTION 139. 766.59 (1) of the statutes is amended to read:
4716	4716	766.59 (1) A Except as provided in s. 766.625 (2) (b) 2., a spouse may
4717	4717	unilaterally execute a written statement which classifies the income attributable to
4718	4718	all or certain of that spouse's property other than marital property as individual
4719	4719	property.
4720	4720	SECTION 140. 766.625 of the statutes is created to read:
4721	4721	1
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4723	4723	3
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4746	4746	LRB-4872/1
4747	4747	KMS&JPC:cdc
4748	4748	SECTION 140
4749	4749	ASSEMBLY BILL 803
4750	4750	766.625 Classification of digital property, including the content of
4751	4751	electronic communications. (1) GENERAL. Except as otherwise determined
4752	4752	under sub. (2), classification of digital property, including the content of electronic
4753	4753	communications, is determined under s. 766.31.
4754	4754	(2) EXCEPTIONS. (a) Digital property in an account. An account and the digital
4755	4755	property held in an account, as defined in s. 766.01 (9) (e), including the content of
4756	4756	electronic communications, as defined in s. 711.03 (6), not otherwise classified as
4757	4757	individual property under s. 766.31 (6) and (7) (a) to (d), is classified as the individual
4758	4758	property of the holding spouse, regardless of the classification of property used to
4759	4759	create, purchase, or otherwise acquire the account and digital property held in the
4760	4760	account, unless the nonholding spouse can prove that any of the following apply:
4761	4761	1. `Creation.' The account or the digital property in the account was not
4762	4762	originally created, purchased, or otherwise acquired exclusively for the personal,
4763	4763	noneconomic purposes of the holding spouse.
4764	4764	2. `Use.' The account or the digital property in the account has at any time been
4765	4765	used for purposes other than the personal, noneconomic purposes of the holding
4766	4766	spouse.
4767	4767	(b) Exchanges; income. Notwithstanding par. (a), with respect to an account
4768	4768	and the digital property held in the account, as defined in s. 766.01 (9) (e), including
4769	4769	the content of electronic communications, as defined in s. 711.03 (6), classified as
4770	4770	individual property solely by reason of par. (a), all of the following apply:
4771	4771	1. `Exchanges; Proceeds.' Section 766.31 (7) (b) does not apply, and in the event
4772	4772	of a sale, exchange, or other disposition, property received in exchange for such
4773	4773	account, or the digital property in the account, is classified as marital property.
4774	4774	1
4775	4775	2
4776	4776	3
4777	4777	4
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4779	4779	6
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4798	4798	KMS&JPC:cdc
4799	4799	SECTION 140 ASSEMBLY BILL 803
4800	4800	2. `Income.' Section 766.59 does not apply, and income during marriage and
4801	4801	after the determination date attributable to the account, or the digital property in
4802	4802	the account, is classified as marital property.
4803	4803	SECTION 141. 766.63 (1) of the statutes is amended to read:
4804	4804	766.63 (1) Except as provided otherwise in ss. 766.61 and, 766.62, and 766.625
4805	4805	(2), mixing marital property with property other than marital property reclassifies
4806	4806	the other property to marital property unless the component of the mixed property
4807	4807	which is not marital property can be traced.
4808	4808	SECTION 142. 766.70 (3) (dm) of the statutes is created to read:
4809	4809	766.70 (3) (dm) An interest in a digital property account, as defined in s. 711.03
4810	4810	(1).
4811	4811	SECTION 143. 814.66 (1) (o) of the statutes is created to read:
4812	4812	814.66 (1) (o) For filing a petition to commence a judicial proceeding under ch.
4813	4813	701, $250.
4814	4814	SECTION 144. 851.21 (2) (e) of the statutes is amended to read:
4815	4815	851.21 (2) (e) A beneficiary of a trust created under documents offered for
4816	4816	probate as the will of the decedent upon the admission of the decedent's will to
4817	4817	probate and the issuance of letters of trust to court's appointment of the trustee.
4818	4818	SECTION 145. 854.13 (1) (c) of the statutes is amended to read:
4819	4819	854.13 (1) (c) “Power of appointment" has the meaning given in s. 702.02 (6)
4820	4820	702.102 (14).
4821	4821	SECTION 146. 856.29 of the statutes is amended to read:
4822	4822	856.29 Letters issued to trustee Appointment of testamentary trust
4823	4823	trustee. If the will of the decedent provides for a testamentary trust, letters of trust
4824	4824	shall be issued to the court shall appoint the trustee upon admission of the will to
4825	4825	1
4826	4826	2
4827	4827	3
4828	4828	4
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4850	4850	LRB-4872/1
4851	4851	KMS&JPC:cdc
4852	4852	SECTION 146
4853	4853	ASSEMBLY BILL 803
4854	4854	probate at the same time that letters are granted to the personal representative,
4855	4855	unless the court otherwise directs. Upon issuance of letters of trust, the The trustee
4856	4856	so appointed shall continue to be interested in the estate, and beneficiaries in the
4857	4857	testamentary trust shall cease to be interested in the estate except under s. 851.21
4858	4858	(3). Letters of trust shall not be required to evidence the authority of a testamentary
4859	4859	trustee and a certification of trust under s. 701.1013 shall be sufficient evidence of
4860	4860	such authority. This section shall apply to wills admitted to informal probate and
4861	4861	letters issued in informal administrations.
4862	4862	SECTION 147. 859.02 (3) of the statutes is amended to read:
4863	4863	859.02 (3) Failure of a claimant timely to file a claim against a decedent's estate
4864	4864	does not bar the claimant from satisfying the claim not otherwise barred from
4865	4865	property other than the decedent's estate.
4866	4866	SECTION 148. 865.08 (6) of the statutes is amended to read:
4867	4867	865.08 (6) If the will of the decedent provides for a testamentary trust, letters
4868	4868	of trust shall be issued by the probate registrar to shall appoint the trustee upon
4869	4869	admission of the will to informal probate at the same time that letters are granted
4870	4870	to the personal representative. Letters of trust shall not be required to evidence the
4871	4871	authority of the appointed trustee and a certification of trust under s. 701.1013 shall
4872	4872	be sufficient evidence of such authority. The probate registrar shall determine if
4873	4873	bond shall be required and, if so, the amount thereof, and for such purpose the
4874	4874	probate registrar shall have the authority granted to the court by, and shall proceed
4875	4875	pursuant to s. 701.0702. Thereafter, the trustee shall continue to be interested in the
4876	4876	estate, and beneficiaries of the testamentary trust shall cease to be interested in the
4877	4877	estate except under s. 851.21 (3). The administration of the trust shall be
4878	4878	administered under supervision of the court under governed by ch. 701.
4879	4879	1
4880	4880	2
4881	4881	3
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4883	4883	5
4884	4884	6
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4904	4904	KMS&JPC:cdc
4905	4905	SECTION 149 ASSEMBLY BILL 803
4906	4906	SECTION 149. 905.03 (2m) of the statutes is created to read:
4907	4907	905.03 (2m) PRIVILEGE WHEN CLIENT IS A FIDUCIARY. When a lawyer represents
4908	4908	a client who is serving as a personal representative, trustee, trust protector, directing
4909	4909	party, guardian, conservator, guardian ad litem, attorney in fact for financial
4910	4910	matters, health care agent, or other fiduciary, the lawyer's client is the person who
4911	4911	is acting as a fiduciary, and not anyone to whom the client owes fiduciary or other
4912	4912	duties, and communication between the lawyer and such a client is protected from
4913	4913	disclosure to the same extent as if the client was not acting as a fiduciary. The
4914	4914	privilege may be claimed by the client, or otherwise as provided in sub. (3), even
4915	4915	against anyone to whom the client owes fiduciary or other duties.
4916	4916	(END)
4917	4917	1
4918	4918	2
4919	4919	3
4920	4920	4
4921	4921	5
4922	4922	6
4923	4923	7
4924	4924	8
4925	4925	9
4926	4926	10
4927	4927	11